Emerging-market equity investors are signaling they’re done running for safety and are hungry for risk.
Stocks in developing nations have added $1.1 trillion in the past two weeks as anxiety about global interest rates gives way to optimism the Federal Reserve has reached the end of its tightening phase. What’s more, growth stocks are heading for their biggest three-day gain against the more sedate value stocks since March.
That means money managers are willing to own shares of companies with faster revenue growth but also expensive valuations — such as e-commerce providers and electric-vehicle makers — as they may yield outsized returns in a less hawkish policy environment. That’s a shift from most of the year, when mature companies with cheaper price-earnings ratios were favored, given their tendency to limit losses in a selloff.
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.
