Oil - Fueling Growth in the Emerging Markets
One major positive factor helping many emerging market companies now is the historically low price of oil. Although the volatility of the past few months has caused many investors to grow concerned about emerging markets, lower oil prices are a tailwind for many companies, and an active investor can target a range of resulting opportunities in this space.
While the decline in oil prices set a favorable environment for many emerging market economies, it is not a ubiquitous benefit. The impact of lower-priced oil in the emerging markets is one of many conditions that create opportunities for active managers to discover attractive investments.
Past performance is no guarantee of future results.
Investment Risk — There can be no guarantee that any investment strategy (risk management or otherwise) will be successful. All investing involves risk, including the potential of loss of principal.
Emerging Markets Risk — The risks of foreign investments are typically greater in less developed countries, which are sometimes referred to as emerging markets. For example, legal, political and economic structures in these countries may be changing rapidly, which can cause instability and greater risk of loss. These countries are also more likely to experience higher levels of in ation, de ation or currency devaluation, which could hurt their economies and securities markets. For these and other reasons, investments in emerging markets are often considered speculative. Similarly, investors are also subject to foreign securities risks including, but not limited to, the fact that foreign investments may be subject to different and in some circumstances less stringent regulatory and disclosure standards than US investments.
Mirae Asset Global Investments (USA) LLC is the investment advisor for the Mirae Asset Discovery Funds.