Emerging Market Stocks: Have They Hit Bottom?

By Patricia Ribeiro - October 29, 2018

It's no secret that emerging market (EM) companies were battered in recent months—and 2018 hasn't been kind to them generally. But I'll say this: many emerging market stocks have been hit unfairly, as they got swept up in the fear of an EM contagion that never materialized.

Furthermore, the market is just not recognizing—or rewarding—those companies with strong and/or encouraging fundamentals. A big part of the recent EM downturn is attributable to fears associated with real issues with three countries: Turkey, Argentina and China.

Many people have asked me in recent weeks whether emerging market stocks have hit a bottom, and here's how I've answered: if they haven't, I think they're close.

In my most recent video, I explain why I'm still encouraged by the opportunities in emerging markets, and how we scrutinize our portfolio when the waters get rough.

Patricia Ribeiro
Patricia Ribeiro
Emerging Markets

TRANSCRIPT

  • Related Articles
  • More From Author

Stocks Reverse Course after Rallying on Tentative Trade Agreement

U.S. stocks declined significantly as investors grew concerned about whether the recent "truce" would hold between the U.S. and China in their ongoing trade conflicts.

What the Brazilian Elections Means for Investors

The people have spoken: Jair Bolsonaro will be the new president of Brazil. Now CPM Nathan Chaudoin provides commentary on market reaction.

Emerging Market Stocks: Have They Hit Bottom?

2018 hasn't been kind to emerging markets. Sr. Portfolio Manager Patricia Ribeiro believes fears of contagion, which never materialized, caused the recent volatility. Read why she's still encouraged by opportunities.

    Emerging Market Stocks: Have They Hit Bottom?

    2018 hasn't been kind to emerging markets. Sr. Portfolio Manager Patricia Ribeiro believes fears of contagion, which never materialized, caused the recent volatility. Read why she's still encouraged by opportunities.

      Generally, as interest rates rise, the value of the securities held in the fund will decline. The opposite is true when interest rates decline.

      Investment return and principal value of security investments will fluctuate. The value at the time of redemption may be more or less than the original cost. Past performance is no guarantee of future results.

      The opinions expressed are those of American Century Investments (or the portfolio manager) and are no guarantee of the future performance of any American Century Investments' portfolio. This material has been prepared for educational purposes only. It is not intended to provide, and should not be relied upon for, investment, accounting, legal or tax advice.