Compelling Opportunities in Emerging Market
Emerging Market (EM) equities show significant growth potential for the remainder of 2021. This is based on six pillars: (1) a strong case for a weaker US dollar, (2) increasingly attractive interest rate differential between the developed markets (DM) and EM, (3) stable commodity prices, (4) a powerful COVID-19 recovery story, (5) synchronized global growth, and (6) significant valuation discounts vs. DM.
Investment Considerations — There can be no guarantee that any 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, political, legal and economic structures in these country may be changing rapidly, which can cause instability and greater risk of loss. These countries are also more likely to experience higher levels of inflation, deflation 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 U.S. investments.