3 reasons to choose emerging markets

Investors are confident about emerging markets, finds deVere Group.

“There’s been a considerable jump in interest from our clients regarding investment opportunities in emerging markets over the last two months,” says CEO Nigel Green. “[Even though] emerging markets have taken a hit in recent times, with some significant losses [earlier] this year, [interest] has [risen] to where it was around Q1 of 2013.”

Read: A tour of global markets

He adds the main reasons for this shift are:

• the valuations of emerging market stocks are becoming more compelling;
• U.S. QE tapering hasn’t resulted in higher U.S. Treasury yields and, thus, borrowing costs for emerging market countries hasn’t become more expensive; and
• political uncertainty has started to ease in countries such as Russia and India. In emerging market regions, more officials are focused on economic reform and stability.

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Staff

The staff of Advisor.ca have been covering news for financial advisors since 1998.