Tom Lydon on CNBC: Investors Doubling Down on Emerging Markets, Trade Deal

Despite the deep declines, with respect to value compared to price, many of these ETFs from abroad present a profitable opportunity that can be realized, especially if China and the U.S. ameliorate their trade differences. It presents an interesting opportunity for the investor who is seeking value in terms of locating discounted assets.

Emerging markets did got a slight prop up recently due to strength in Brazil as a result of Jair Bolsonaro’s election, which was the message Brazilian voters communicated to the world that anti-establishment was in and traditional politics was out. Of course, Bolsonario’s biggest task is to help extract the country from its current economic doldrums, but his election is perceived by market experts as one that leans toward the benefit of the country’s capital markets.

Still, it will take a special kind of investor who can stay invested in emerging markets and reap its potential benefits. In essence, emerging markets represent a value proposition for those investors who are willing to accept the risk in lieu of the returns in the long-term horizon.

“If you’ve got that cast iron stomach and you’re not allocated to emerging markets, you might look back a couple of years from now and say, ‘I’m glad I took advantage of that,’” Lydon told Yahoo Finance in a separate segment.

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