Emerging markets are neutral for 15 years now. In fact, as 2024 kicks off, EEM ETF, representative of emerging markets, trades at the exact same point as the market’s top in 2007. Our emerging markets outlook for 2024 is neutral to mildly bullish, we expect a mild rise in EEM ETF in the first half of 2024. That’s because the USD, negatively correlated with emerging markets, is weak (for now).
Why do we focus on emerging markets given a bright outlook for U.S. stocks?
Well, in any diversified portfolio, it is worth looking into opportunities that are developing across the world and across asset classes. Our emerging markets outlook 2024 is meant to understand if emerging markets will offer potential opportunities for investors in 2024.
Fidelity Emerging Markets Limited (LON:FEML) is an investment trust that aims to achieve long-term capital growth from an actively managed portfolio made up primarily of securities and financial instruments providing exposure to emerging markets companies, both listed and unlisted.