Despite the precipitous selloff of emerging-market equities, the group’s long-term growth story remains intact. We highlight the best strategy for patient investors looking to add exposure to this theme.
Excess capacity and weak demand growth have weighed on commodity prices and soured investor sentiment toward the mining industry. But efforts to slash capital expenditures and operating expenses should help our favorite names to dig their way out of this hole over the next two years.
After three years of underperforming, Asia’s emerging markets could surprise to the upside in 2014. Not only have equity markets discounted the structural challenges that these nations face, but also the bar of expectations for regional economic growth and stock markets remain quite low.
Central banks' accommodative monetary policies, coupled with accelerating economic activity in the US and the recovery under way in the eurozone, should benefit emerging markets, especially those that rely heavily on exports to these regions.
Our outlook for global economic expansion bodes well for equity markets, especially those that have lagged over the past 12 months. We prefer emerging markets that have a current account surplus and significant exposure to global trade.
Unlike the infamous Pets.com and other casualties of the tech bust in 2000--outfits that generated more hype than profits--many of today’s Internet companies have developed profitable business models and are here to stay. But this growth story is far from over, especially in China, the world’s quintessential emerging economy.
Welcome to the bear market for the once-booming global mining complex. With prices of copper, gold and other mined commodities sliding, the prices of the world’s largest mining companies have approached valuations not seen since the nadir of the 2008-09 bear market. But there's gold in this downtrodden sector--especially for hardy income-seeking investors with the patience to wait for a turnaround.
Trying to pick a winner in the increasingly competitive handset and tablet market is a risky endeavor. Instead, investors should focus on names that benefit from growing demand for mobile devices regardless of which handset maker comes out on top.
Although worries about heightened systemic risk in China’s financial system appear legitimate, the People's Bank of China made its point loud and clear when it allowed the overnight Shanghai Interbank Offered Rate to spike on June 20. Here's what it means for investors.
Investors with a longer time horizon should take advantage of periodic weakness to build positions in inexpensive markets that offer real upside potential. Asia’s emerging markets fit the bill on both accounts.
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