- Emerging markets have rebounded but are still neglected.
- Their fundamentals are way better than those of the S&P 500.
- Volatility and currency risks are omnipresent but a good strategy can increase returns in such an environment.
Only positive news comes from the US economy, from housing growth to the Federal Reserve Chairwoman Janet Yellen signaling a rate hike. All this news is pushing the S&P 500 towards reaching new highs. Yet a stronger dollar in the longer term will mean cheaper imports and more expensive exports. This perspective inevitably leads toward contemplating investing into emerging markets as they are currently shunned by the investment community due to their relative underperformance and slump in commodity prices. But, going by the maxim that the best returns are made by going where no one wants to go, this article is going to provide analysis on emerging market opportunities. More →