Emerging Markets Update: Is Now the Time for Emerging Markets?


Although many financial pundits make their predictions for future stock returns based on past results, such an approach is dangerous in our view because it doesn’t consider valuations and can lead to missed opportunities as investors chase performance in the most-speculative areas of the markets.  Moreover, while it’s true that positive or negative price momentum can persist for a while, momentum alone isn’t usually a good indicator of longer-term investment results.  In the case of emerging markets, this paper discusses why we believe the uninspiring returns over the past five years may be contra-indicators of what lies ahead.

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