Emerging Markets Fight Through Volatility and Headlines

2019 Midyear Insights

    Facebook Twitter LinkedIn Email

By Patricia Ribeiro - July 10, 2019

In my last update in April, I had my fingers crossed that we would soon see a truce in the U.S.-China trade war. But in May, another round of tariffs on goods from China and new threats against Mexico, followed by promises of retaliation, roiled global equity markets. We ended June back where we started—with cautious optimism that a truce was in the offing. However, a key takeaway from this experience should be that predicting the exact timing of a trade agreement can be a losing proposition.

Our policy has always been to manage the portfolio on a company-by-company basis and let macro events play out. Furthermore, we find that companies operating in emerging markets are accustomed to volatility, and we look for sharp management teams adept at making adjustments. In fact, earnings reports show that there are companies growing even amid the headlines, which the markets are beginning to recognize.

Although it remains unclear how these disputes will be resolved, trade is just one of many factors impacting emerging economies. For more insight on sorting out the winners and losers, click on my video below.


    Facebook Twitter LinkedIn Email

Insights from our CIOs

Get additional emerging markets insights and more in our latest Investment Outlook.

Discover More
  • Related Articles
  • More From Author

2019 Midyear Insights: Emerging Markets Fight Through Volatility and Headlines

In 2019, we are seeing emerging markets investors focusing more on the bottom up—for stocks that will outperform—and less on just headline news.

Voters Say, ‘Bring on Brexit’

The conservative Tories gained a substantial majority in December’s general election. Here’s what that could mean for Brexit negotiations and more.

A Bright Outlook for Global Growth Investing?

Global equities may have a sunny outlook or 2020, according to Portfolio Manager Brent Puff. Here are three factors shaping his view.

    Investing in Emerging Markets in 2020

    Emerging markets face a tough year ahead with the status of the U.S.-China trade war and the U.S. presidential election still up in the air.

    Markets Rally After Last Week's Coronavirus Jitters

    Coronavirus uncertainty put markets through the ringer this quarter. Here's why we think the impact could be limited to the first quarter.

      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.

      American Century Investments is not responsible for and does not endorse any comments, content, advertising, products, advice, opinions, recommendations or other materials on or available directly or via hyperlinks to third party applications or websites. Logos or icons used are registered trademarks of their respective owners.