Investors are planning to bet more on emerging markets, according to the latest Markets Live Pulse survey, a sign that the asset class is becoming a go-to stock for those wary of a U.S. recession. .
Investors are planning to bet more on emerging markets, according to the latest Markets Live Pulse survey, a sign that the asset class is becoming a go-to stock for those wary of a U.S. recession. .
About 61% of the 234 wealth managers, analysts and traders surveyed say they will be developing in the next 12 months, even as concerns grow about a potential recession and future direction of the Federal Reserve. of respondents expect their exposure to assets to increase. They say the asset class stands to be a safe haven should the central bank’s anti-inflation measures push the U.S. economy into recession.
About 61% of the 234 wealth managers, analysts and traders surveyed say they will be developing in the next 12 months, even as concerns grow about a potential recession and future direction of the Federal Reserve. of respondents expect their exposure to assets to increase. They say the asset class stands to be a safe haven should the central bank’s anti-inflation measures push the U.S. economy into recession.
“Developing world economies are much more resilient today than they were 30 years ago, and emerging market central banks have a much greater responsibility in managing rising inflation than they did in developed countries,” the paper said. Managing Director Justin Leverenz said. The $26 billion Invesco Development Markets Fund is one of the world’s top performing large emerging equity funds this year.
“Developing world economies are much more resilient today than they were 30 years ago, and emerging market central banks have a much greater responsibility in managing rising inflation than they did in developed countries,” the paper said. Managing Director Justin Leverenz said. The $26 billion Invesco Development Markets Fund is one of the world’s top performing large emerging equity funds this year.
“Emerging markets as a whole are of great value. Not only have they become more resilient over the past decade, they have been almost completely ignored by global investors,” he said.
“Emerging markets as a whole are of great value. Not only have they become more resilient over the past decade, they have been almost completely ignored by global investors,” he said.
About 49% of survey respondents said their underlying growth and attractive valuations would allow them to outperform their mature peers, even if the U.S. recession causes emerging assets to fall.
About 49% of survey respondents said their underlying growth and attractive valuations would allow them to outperform their mature peers, even if the U.S. recession causes emerging assets to fall.
Malcolm Dawson, money manager at Global X Management in New York, also said emerging markets are in a better position than major economies in the wake of the pandemic. This has allowed some developing countries to avoid the hangover of similar policies and stimulus measures that threaten the US and Europe.
Malcolm Dawson, money manager at Global X Management in New York, also said emerging markets are in a better position than major economies in the wake of the pandemic. This has allowed some developing countries to avoid the hangover of similar policies and stimulus measures that threaten the US and Europe.
“Underlying EM growth could improve, valuations are cheap and the long-term attractiveness of EM remains undiminished,” said Devan Kalou, global head of emerging markets at Abdon. rice field.
“Underlying EM growth could improve, valuations are cheap and the long-term attractiveness of EM remains undiminished,” said Devan Kalou, global head of emerging markets at Abdon. rice field.
Preferred asset
That relative outperformance is likely due to equities, according to the study. About 41% of survey respondents said equities would be the best choice for investing in emerging markets over the next 12 months.
Preferred asset
That relative outperformance is likely due to equities, according to the study. About 41% of survey respondents said equities would be the best choice for investing in emerging markets over the next 12 months.
At least part of that optimism comes down to relative opportunity. The MSCI Emerging Markets Index is up just 2.2% year-to-date, compared with a similar measure of developed-market stocks up 9.2%.
At least part of that optimism comes down to relative opportunity. The MSCI Emerging Markets Index is up just 2.2% year-to-date, compared with a similar measure of developed-market stocks up 9.2%.
“We need an emerging country that can sustain a reasonable level of potential production and a business that can create value,” said Louis Kaufmann. The $3.7 billion Artisan Developing World Fund has outpaced 99% of its U.S.-based peers so far this year, said Louis Kaufmann.
“We need emerging countries that can sustain a reasonable level of potential output and businesses that can create value,” said Louis Kaufmann. The $3.7 billion Artisan Developing World Fund has outpaced 99% of its U.S.-based peers so far this year, said Louis Kaufmann.
Geographically, respondents also rallied for opportunities in Southeast Asia. A majority of respondents said assets in the region would deliver the best returns in emerging markets on a two-year basis.
Geographically, respondents also rallied for opportunities in Southeast Asia. A majority of respondents said assets in the region would deliver the best returns in emerging markets on a two-year basis.
“Southeast Asia is one of the best places for long-term investors,” said Aninda Mitra, macro and investment strategist at BNY Mellon Investment Management in Singapore. “The dynamics are good and the investment is stable.” The flow of foreign direct investment is increasing. ”
“Southeast Asia is one of the best places for long-term investors,” said Aninda Mitra, macro and investment strategist at BNY Mellon Investment Management in Singapore. “The dynamics are good and the investment is stable.” The flow of foreign direct investment is increasing. ”
HSBC Asset Management’s head of global capabilities for active equities, Alexander Davey, said China’s growth is normalizing as the country’s economy reopens and manufacturing expands. Meanwhile, Goldman Sachs Group Inc. said it sees investment opportunities in Thai bank stocks.
China’s growth is beginning to normalize as the country’s economy reopens and manufacturing expands, said Alexander Davey, head of global capabilities for active equities at HSBC Asset Management. Meanwhile, Goldman Sachs Group Inc. said it sees investment opportunities in Thai bank stocks.
About 65% of respondents to the Bloomberg survey, conducted May 15-19, were based in Europe or North America. About 19% said they were based in Asia. The majority of respondents said they were portfolio managers, individual investors or strategists.
About 65% of respondents to the Bloomberg survey, conducted May 15-19, were based in Europe or North America. About 19% said they were based in Asia. The majority of respondents said they were portfolio managers, individual investors or strategists.
MLIV Pulse is a weekly survey of Bloomberg News readers in terminals and online by Bloomberg’s Market Live team, which operates the MLIV blog on terminals 24/7.
MLIV Pulse is a weekly survey of Bloomberg News readers in terminals and online by Bloomberg’s Market Live team, which operates the MLIV blog on terminals 24/7.
