Emerging Market Equities are a “Buy”
Emerging market equities are a "buy" in comparison to other asset classes which provide only low returns, according to the Old Mutual Investment Group of South Africa. Even when you consider the risk, emerging markets are still trading at a discount to developed markets while looking at current valuations.
Old Mutual believes this is the case, and they as a result, they have been increasing their exposure to emerging market equities in the funds they manage where possible. During the past two years stocks in developed markets, such as France, Japan and the United States, have suffered due to the global financial crisis and European bank issues. However, Bloomberg tracking reports have shown that fourteen out of nineteen emerging markets are giving positive returns this year.