Invest
Emerging markets picked as ‘attractive opportunity’ in 2019
Emerging markets are an “attractive opportunity” for investors in 2019 as the US experiences its late cycle and Europe suffers from widespread political and policy risk, according to one investment firm.
Emerging markets picked as ‘attractive opportunity’ in 2019
Emerging markets are an “attractive opportunity” for investors in 2019 as the US experiences its late cycle and Europe suffers from widespread political and policy risk, according to one investment firm.
In a round-table discussion conducted recently, the chief investment officers of Neuberger Berman agreed mid-cycle dynamics may result in emerging markets proving a better source of value than the US in 2019.
The CIOs stated that as they did not foresee a major global slowdown on the horizon, alongside the fact that Italy, England and Germany will each experience political and/or economic policy overhauls in 2019, emerging markets are looking appealing for investors.
“The risks are real,” said Joseph V. Amato, president and chief investment officer of equities at Neuberger Berman.
“Overall, however, it supports the case for tilting towards emerging markets and Japan over Europe when looking for risk exposure outside of the US. If you accept that recession probability is low in 2019, and if Europe gets through the year unscathed, you could stand to benefit through emerging markets without so much exposure to the potential downside risks.”
Risk assets in particular were pinpointed as an area of growth for the emerging markets, as performance is picked to reconverge with what was seen from the US in 2017 and 2018.
Lastly, current uncertainties surround oil prices were deemed not to be a long-term risk, with future upside predicted.
“Overall, the developed world plus China is a net user and the emerging world is a net supplier, as a rule of thumb,” Mr Amato explained.
“Subdued oil prices, and therefore, subdued inflation and a weaker dollar, could support non-US recovery and convergence.”
Stock market
‘The concept of collective investing is here to stay’
The phenomenon of retail investors acting as a collective, led by social media and celebrity investors, is here to stay, says one expert. ...Read more
Stock market
What is short selling and should you do it?
Short selling stocks may sound like a good investment strategy when you’re after quick and big returns, but is it worth the risk? Here’s a rundown of why shorting stocks may not be a sound stock t...Read more
Stock market
How much insider trading really happens?
There are at least four times as many people who get away with insider trading than the number of those caught by prosecutors, new research has revealed. ...Read more
Stock market
Why you should be wary of the tech stock bandwagon
After a strong year of tech stock gains, tech shares have been on a decline in recent weeks as increasing bond yields rattle equity markets. ...Read more
Stock market
GameStop set to release first earnings since Reddit stock market rally
The video game retailer at the centre of the WallStreetBets saga is set to post its first quarterly market update since the fiasco began, with social-media investors heavily tipped to continue backing...Read more
Stock market
What is thematic investing and why it could be a fad
Long-term investors are being urged to ignore market fads and instead focus on identifying major socioeconomic, environmental and technological themes, an industry expert has explained. ...Read more
Stock market
ASX 300 companies cash in on JobKeeper scheme
Most of Australia’s ASX 300 companies that received JobKeeper payments did not need the subsidy as they recorded increases in profits throughout the calendar year, according to a study. ...Read more
Stock market
Dividend yields tipped to return for investors
Hard-hit dividend investors are likely to see a reprieve earlier than previously, with a better than expected reporting season seeing a more optimistic outlook, an industry expert has said. ...Read more
Home values up 30% (or are they); NFTs taking the world by storm, and why Keating thinks Aussies will be ‘poor’ in retirement
Listen now
Raging floods, the tech stock bubble and the ongoing SG debate
Listen now
Meet the Manager with Trilogy’s Philip Ryan: RBA rates and property price growth
Listen now
The continued property boom, ethical investing and engaging with your super fund
Listen now
Stock market
‘The concept of collective investing is here to stay’
The phenomenon of retail investors acting as a collective, led by social media and celebrity investors, is here to stay, says one expert. ...Read more
Stock market
What is short selling and should you do it?
Short selling stocks may sound like a good investment strategy when you’re after quick and big returns, but is it worth the risk? Here’s a rundown of why shorting stocks may not be a sound stock t...Read more
Stock market
How much insider trading really happens?
There are at least four times as many people who get away with insider trading than the number of those caught by prosecutors, new research has revealed. ...Read more
Stock market
Why you should be wary of the tech stock bandwagon
After a strong year of tech stock gains, tech shares have been on a decline in recent weeks as increasing bond yields rattle equity markets. ...Read more
Stock market
GameStop set to release first earnings since Reddit stock market rally
The video game retailer at the centre of the WallStreetBets saga is set to post its first quarterly market update since the fiasco began, with social-media investors heavily tipped to continue backing...Read more
Stock market
What is thematic investing and why it could be a fad
Long-term investors are being urged to ignore market fads and instead focus on identifying major socioeconomic, environmental and technological themes, an industry expert has explained. ...Read more
Stock market
ASX 300 companies cash in on JobKeeper scheme
Most of Australia’s ASX 300 companies that received JobKeeper payments did not need the subsidy as they recorded increases in profits throughout the calendar year, according to a study. ...Read more
Stock market
Dividend yields tipped to return for investors
Hard-hit dividend investors are likely to see a reprieve earlier than previously, with a better than expected reporting season seeing a more optimistic outlook, an industry expert has said. ...Read more
More articles
Website Notifications
Get notifications in real-time for staying up to date with content that matters to you.
