Emerging markets have had a torrid time over the past few years, particularly the BRIC regions of Brazil, Russia, India and China. As emerging markets start to pick up however, should investors reconsider them?
Gautam Batra investment strategist, Signia Wealth Still too early It is too early for investors to allocate to the BRIC market, as we have yet to fully understand the extent of China’s slowdown. The Federal Reserve’s tapering is reducing liquidity and is likely to result in outflows from emerging markets. This, coupled with the Russian geopolitical standoff and retaliatory sanctions, increases the likelihood of a sharp slowdown in Russia, with the potential for a sudden stop event. Contagion from such an event in Russia needs to be priced in by markets. Increased volatili...
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