Emerging Markets Debt: Invest Selectively

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By Margé Karner - January 25, 2019

In my opinion, data tells a more complete, objective story as compared with market sentiment, which got pretty pessimistic in the final months of 2018. In fact, I believe there will be an acceleration in growth this year in several emerging market (EM) countries—leading me to be optimistic about investing opportunities in 2019.

That being said, I’m not suggesting to invest broadly in EM debt. The EM landscape is not only uneven, it can be downright jagged in some spots, which makes active management as important as ever. There clearly are economic issues around the globe; we only have to look at the still-broken trade relationship between the U.S. and China to remind us of that. But because of lower valuations despite stable fundamentals in some countries, the market could reward investors who choose wisely among EM debt.

Check out my latest quarterly update video to find out my thoughts on these topics and more.

Margé Karner
Margé Karner

Transcript

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      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.