Fears over inflation are old news

ON EMERGING MARKETS

Charlemagne Capital's Julian Mayo says real opportunities exist in the asset class.

Market turbulence has affected sentiment toward emerging markets. Analysts fear investors’ expectations of the region were optimistic as the West flirts with recession again. For our part, we would highlight the US stock markets, for all their current malaise, are higher than they were 12 months ago while emerging markets have underperformed, down 5% year to date. On that basis, the emerging negative sentiment towards GEM equities has already been baked into values and, as a result, real opportunities exist. Sentiment appears to be driven by the stalling Western recovery and concer...