BlackRock co-global head of equities Nigel Bolton said emerging markets are under the greatest stress compared to other regions, but he is eyeing a turnaround next year.
EM funds were hit by the biggest level of outflows since 2008 this year and the sector remains vulnerable as the Federal Reserve prepares to raise interest rates. However, Bolton said investors should also consider positives for the region, including the fact consumer spending – particularly on services rather than goods in countries such as India and China – is growing and remains healthy for now. Bolton said: "It is probably still a little early but emerging markets need to be on your radar. Dividend yields are now over 3% and the price-to-earnings ratio is down at 11 times. "Net...
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