High Expectations For Emerging Markets
78%: Investors expecting emerging markets to outperform developed markets over the next 3 years
Investing in emerging markets has long been popular with investors looking to benefit from the growth potential of developing countries. As shown in the most recent Commonfund Investor Outlook Survey, this perception of emerging markets is not changing. 78% of the survey's respondents expect the MSCI Emerging Markets Index to outperform the S&P 500 over the next three years.
Emerging markets, however, can test the nerves of investors as they have been very volatile in the past. BlackRock's emerging markets experts discuss opportunities, misconceptions and ways to incorporate emerging markets investments into a portfolio in their recent point of view.
Source: 2013 Commonfund Investor Outlook Survey
Investments in emerging markets may be considered speculative and are more likely to experience hyperinflation and currency devaluations, which adversely affect returns. In addition, many emerging securities markets have lower trading volumes and less liquidity.
Browse: Daily Stat
Related by Topic: Alternatives
The investment environment has undergone massive changes in the past few decades, but the biggest impact is the radical increase in the availability of information for investment decision making. It's time for new investment processes and tools.
Jeff Shen & Rodolfo Martell
The case for investing in emerging markets in compelling, but recent performance challenges can make the positives easy to overlook. Jeff Shen and Rodolfo Martell introduce an approach that seeks to balance the risks and rewards inherent in EM investing.
Mark Howard-Johnson & Sherry Rexroad
Mark Howard-Johnson and Sherry Rexroad recommend REITs for potential returns and dividend income, as well as a dose of diversification.
Chart of the Week
A diversified, tactically managed, multi-asset portfolio can result in better risk/return characteristics and improved inflation protection through various market cycles.
Michael Fredericks & Phil Green
Inflation can't be combatted in the rear-view mirror. Phil Green and Michael Fredericks recommend a multi-asset approach for incorporating inflation protection and long-term growth potential into a portfolio.
96%: Advisors who say their typical client has alternative investments in their portfolio
Our view on EMs? In a nutshell, we like 'em. Read more here.
Learn about a new approach to portfolio construction and how "alternative" investments can play a larger role for individual investors.
Stock market volatility since the global credit crisis has scared many investors away, leaving some struggling to generate growth and returns. But we believe there is a way to be invested in stocks that can help mitigate volatility.
Josh Tarnow, Portfolio Manager with the Leveraged Finance Portfolio Team, discusses opportunities for long/short strategies in the credit markets following the US election.
Josh Tarnow & Michael Phelps
With investors challenged to uncover fixed income solutions that provide return, diversification and stability, we spoke with BlackRock fixed income experts Josh Tarnow and Michael Phelps about the benefits of an allocation to fixed income credit.