subscribe to our newsletter sign up

Website Notifications

Get notifications in real-time for staying up to date with content that matters to you.

Emerging markets picked as ‘attractive opportunity’ in 2019

Watching stock market

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.”

Emerging markets picked as ‘attractive opportunity’ in 2019
Watching stock market
nestegg logo
subscribe to our newsletter sign up
Recommended by Spike Native Network
Anonymous - This is all identity politics rubbish. Inasmuch as most families are dual income earners and as most women are not in high paying jobs for a variety.......
Margaret - Happy that I won't be around in 2060....
Anonymous - This "analysis" is misconceived and should get a fail in statistics. Men pay more tax because they work more. So they should get more relief. And,.......
Anonymous - I'm not sure how the ATO can declare there is an "$8.7 Billion hole" without already being able to confirm that all these claims are illegitimate?