Financial managers and investors in the United States are beginning to see considerable discounts in emerging markets as the massive sell-off continues. According to Reuters, emerging market stocks have hit a 17 month low, and have fallen 21 percent since the beginning of the year. Emerging Market currencies are also down eight percent since March of this year.
However, the decline of emerging markets makes it easier for investors to add emerging markets to their portfolio for a discount. According to Reuters, financial powerhouses like “Harding Loevner, Federated Investors, and Wells Fargo” have all shown an interest in emerging markets as a way to ride out the United States’ rising interest rates and the economic war between Beijing and Washington.
While the US and China continue to hit at each other with tariffs, some emerging markets are unlikely to be affected, making them an ideal choice for certain investors.
“We’re finding opportunities because of the trade war,” said portfolio manager Chris Mack of Harding Loevner Global Equity fund while speaking to Reuters.