Investors are confident about emerging markets, finds deVere Group.
“There’s been a considerable jump in interest from our clients regarding investment opportunities in emerging markets over the last two months,” says CEO Nigel Green. “[Even though] emerging markets have taken a hit in recent times, with some significant losses [earlier] this year, [interest] has [risen] to where it was around Q1 of 2013.”
Read: A tour of global markets
He adds the main reasons for this shift are:
- the valuations of emerging market stocks are becoming more compelling;
- U.S. QE tapering hasn’t resulted in higher U.S. Treasury yields and, thus, borrowing costs for emerging market countries hasn’t become more expensive; and
- political uncertainty has started to ease in countries such as Russia and India. In emerging market regions, more officials are focused on economic reform and stability.