Time to Get Fussy

Thursday, March 21st, 2019   Categories: , ,

Be selective in EM Equities

Indiscriminate buying of any and all emerging market equities worked well from Q4 2018 to Q1 2019. We now see signals that it is time to be more selective. We have just put four EM countries on our negative watch list, and we will have to rely much more on index heavyweights like India, China and Taiwan if the region is to continue to outperform. The region also faces renewed competition from certain “cheap” European countries.