The underperformance of Bric equities is becoming an embarrassment for investors who are long – and for analysts who have been promoting the stocks. Not only have Bric shares lagged behind the developed world, they have been outpaced by small emerging markets, from Peru to the Philippines.
But one Bric bull who is sticking to his guns is Jonathan Anderson of Emerging Advisors Group. He says that it’s only a matter of time before Bric equities recover – and some of the headline-making small EMs come under pressure. Continue reading »
Emerging stocks are heading for their biggest first-quarter drop since 2008, weighed down by slowing economic growth, worries about profits, concerns about the Chinese property market and the general unease about the euro crisis.
With some EM currencies also suffering as the US dollar has surged ahead since the start of the year, it hasn’t been a great three months for fixed income either. Continue reading »
It’s never easy to find a bearish emerging markets equities strategist. But John-Paul Smith of Deutsche Bank is generally ready to oblige.
Just when many other market-watchers are forecasting a good 2013 for EM equities, based on economic recovery and investors switching out of EM bonds, along comes Smith predicting a 10-15 per cent annual drop in EM equities. His reason? A coming Chinese slowdown. Continue reading »
The uncertainty surrounding the Italian election result has upset investors around the globe, not least in emerging markets. While Beppe Grillo, the comedian whose movement won 25 per cent of the vote, may be laughing, fund managers are not.
Following losses on Wall Street, the MSCI Asia ex-Japan index fell 1.2 per cent on Tuesday. Closer to Rome, the impact was bigger, with the MSCI East Europe index down 1.9 per cent in early trading. Watch out for a nervous day. Continue reading »