The Myth That Failed? How To Invest In Emerging Markets
Talking Heads Macro
Wed 16 Oct 2024 - 14:00 BST / 09:00 EDT
Summary
JP kicked off the session by advocating for nuanced investment strategies and skilled active management rather than viewing EMs as a single asset class. Manoj argued that significant stress often drives reform, as seen in India. He highlighted Brazil's resilience and identified specific opportunities in India, Indonesia, and South Africa, cautioning against blanket investment strategies. Jon noted that while China’s GDP growth has been substantial, equity returns remain low due to share dilution. He highlighted potential opportunities from excessive domestic liquidity, framing China as a volatile, high-reward market amidst a challenging macroeconomic backdrop.
Topics
Are emerging markets still a viable asset class after the lost decade?
Different approaches towards investing in EM: passive versus active, long term versus opportunistic/cyclical approaches.
How to incorporate political and geopolitical analysis into portfolio construction.
Potential criteria for picking outperforming countries: valuations, reform, corporate governance, technology, demographics.
The impact of currency on country selection and investor returns.
The role of China in EM portfolios.
