King: EMs are in a cyclical bear market...but will not replay '90s crisis


Emerging markets are currently in a cyclical bear market, with more pain possible, but the sell-off offers investors a good opportunity to add to positions for the long term, according to a leading strategist.

Investec Asset Management's Max King (pictured) said the recent decline in EM valuations has left investors questioning the long-held wisdom that the assets offer superior long-term growth compared to developed nations. He conceded the region is in a cyclical bear market, but said it is not facing a secular one, adding while the sell-off was painful - and could continue - the current downturn is unlikely to morph into a full-blown crisis like the one seen in the '90s. "A replay of the late 1990s crisis looks extremely unlikely, but the pain may not be over yet," he said. "That does...

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