Volatile times can create opportunities for patient investors, and there’s been no shortage of volatility for emerging markets investors lately. Alex Duffy, Portfolio Manager at Fidelity International, says that volatility like this will separate the bad business models from the good. He sees two key areas of opportunity today:

  • Consumption – penetration rates for various household products is increasing as the wealth effect is driving demand for consumer products such as cookware and home appliances.  
  • Financials – with US higher rates enhances competitive advantages for high quality deposit taking banks. The financials’ use of technology will separate the winners and losers.

In the video below, Alex provides some current examples of each theme, both from within and outside his portfolio, and provides his take on an attractive opportunity in the insurance sector.


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