Emerging markets are poised for growth, buoyed by favourable interest rates, a stable US dollar, and beneficial oil prices, per Mark Matthews of Bank Julius Baer & Co.
Matthews pointed out that Korea and Taiwan currently feature among emerging markets but they should be classified as developed markets. In fact, he believes Korea will be added to the MSCI’s developed market index and taken out of emerging next year. But excluding Korea and Taiwan, he noted, “the really big two we all know are China and India.”
Matthews expressed concerns about the Chinese economy.“The momentum is bad. The October numbers show particularly worrying signs in the property sector, property prices, property sales, and new construction starts were all significantly worse than even poor expectations.”
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.