Bull calls on emerging markets equities stand in contrast to recent comments from Goldman Sachs. Last week, the venerable Wall Street bank advised that investors with a “moderate” tolerance for risk reduce their exposure by one-third. Goldman is particularly pessimistic on China, Brazil and Russia, three of the four BRIC nations, citing overinvolvement of governments in their economies, among other issues. [Goldman’s Glum View of Emerging Markets]
Fund managers that have embraced emerging markets equities have done so with inexpensive markets. Russia and China, two of the cheapest developing markets on valuation, were also rated as the most popular in a recent Bank of America-Merrill Lynch survey.
Vanguard FTSE Emerging Markets ETF
ETF Trends editorial team contributed to this post. Tom Lydon’s clients own shares of EMB.