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)


The Livewire Equities feed brings you a range of insights that relate to Australian equities

Expertise

No areas of expertise

I would like to

Only to be used for sending genuine email enquiries to the Contributor. Livewire Markets Pty Ltd reserves its right to take any legal or other appropriate action in relation to misuse of this service.

Personal Information Collection Statement
Your personal information will be passed to the Contributor and/or its authorised service provider to assist the Contributor to contact you about your investment enquiry. They are required not to use your information for any other purpose. Our privacy policy explains how we store personal information and how you may access, correct or complain about the handling of personal information.