“The thing that surprised us a little bit was this narrative that [emerging markets are]facing this impending crisis,” Gomez said in the WSJ article. “There are some very big differences in emerging markets today than there were in crises of the past.”
Emerging market assets are rebounding after an unexpectedly weak jobs number, which prompted speculation that the Fed would hold off on tapering. Moreover, many investors are jumping back in as a way to play the long-term outperformance trend in the emerging markets.
The iShares MSCI Emerging Markets ETF (NYSEArca: EEM) is on an eight-day rally, its longest back-to-back daily gains in six years, Bloomberg reports. The emerging markets are being supported by better-than-expected Chinese export data. [Is It Time to Rethink Emerging Market ETF Exposure?]
For more information on developing economies, visit our emerging markets category.
Max Chen contributed to this article.
Full disclosure: Tom Lydon’s clients own EEM.