Jason Nogueira, associate portfolio manager, at T Rowe Price says the consensus view is that emerging market stocks can't succeed while the US is tapering

Jason Nogueira, associate portfolio manager, at T Rowe Price says the consensus view is that emerging market stocks can't succeed while the US is tapering. However he beleives that view is too simplistic. The Fragile Five with their large current account deficits are going to see negative impacts, but a lot of that is already priced in. Indonesia is the poster child for the Fragile Five but its stock market is pushing higher. Noguiera also says it is a mistake to group all emerging market risks together when they are very different. I can't remember a time when sentiment towards emerging markets was more negative than now. That means there are lots of opportunities. Against the MSCI world benchmark we are underweight the US and Europe and overweight emerging markets. (VIEW LINK)