Kevin Gibson, CIO, equities of Eastspring Investments, has said the quality bubble in emerging markets (EM) equities is starting to burst with value stocks beginning to outperform once again.
Speaking to Investment Week, Gibson (pictured) said there was a "unique opportunity" in emerging markets as investor sentiment towards the asset class and value stocks has been broadly negative over the past few years, thanks to capex building up in EMs, particularly in China, and the fall of commodity prices. This has led to 'quality' stocks performing extremely well as investors sell out of more cyclical names. Have emerging markets passed an inflection point? Gibson said: "The value dispersion has been extremely wide as a function of the Fed, QE and bond proxy stocks performing ...
To continue reading this article...
Join Investment Week for free
Signup and gain exclusive members-only insights - all free of charge!
- Unlimited access to real-time news, analysis and opinion from the investment industry, including the Sustainable Hub covering fund news from the ESG space
- Get ahead of regulatory and technological changes affecting fund management
- Important and breaking news stories selected by the editors delivered straight to your inbox each day
- Weekly members-only newsletter with exclusive opinion pieces from leading industry experts
- Be the first to hear about our extensive events schedule and awards programmes
