- Volatility is a given in emerging markets, but it’s also what creates amazing opportunities.
- Economics, fundamentals, and currencies are all in favor of emerging markets.
- China is just doing what the FED should have done 5 years ago: tighten after an expansion period.
Emerging markets are a volatile beast, this is a given. However, the inherent volatility is mostly the result of our perception and not of actual structural changes in a country. As an example, last year a wonderful buying opportunity emerged in Cemig (NYSE: CIG), a Brazilian utility from the state of Minas Gerais. CIG’s stock price fell from double digits to $1.05 in just a few years. More →