Strategists say now’s the time to buy into emerging market

This year, emerging markets have been battered by weak markets, high inflation, and a strong U.S. dollar. While the S&P 500 is down 22% so far this year, the MSCI Emerging Market Index has fallen 29%. As a result, investors are running scared, having pulled $16 billion from EM mutual and ETFs since June.

But some strategists think the sector may be due for a comeback.

Columbia Threadneedle’s head of multi-asset strategy, Anwiti Bahuguna, told the Wall Street Journal that investors haven’t given developing markets enough credit for fighting inflation, describing the massive selloff as a sign of “extreme investor pessimism.”

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.

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