Recent Setbacks in Emerging Markets

Don't Outweigh Long-Term Optimism

By Patricia Ribeiro & Nathan Chaudoin - October 2018


It has been a tough year for emerging markets (EM). Financial headlines tell the story:

  • Global growth rates have slowed
  • Trade conflicts have heated up 
  • Oil prices have risen
  • Various geopolitical issues have surfaced 

After years of historically low market volatility, investors viewed the recent turbulence as an opportunity to seek profits after EM equities (MSCI Emerging Markets Index) had almost doubled since 2016. This combination weighed heavily on emerging markets in the third quarter, sending the Index down approximately 13% (through October 22) since the high point earlier this year.

Nathan Chaudoin
Nathan Chaudoin

Recent Setbacks Don't Outweigh Long-Term Optimism on Emerging Markets

Notes from the Global Growth Equity Desk

Download PDF
  • Related Articles
  • More From Author

Current Trends in Global Small Caps

Learn about why we believe global small caps offer diversification and performance potential.

Is Now the Time for Value Investing in Emerging Markets?

Despite the fears gripping emerging markets, we see attractive opportunities for long-term investors.

The Value of an Active, Global Approach in Small-Cap Investing

Learn why we believe small-cap stocks can provide portfolio diversification and performance potential.

    Recent Setbacks in Emerging Markets

    Consider current conditions as short-term difficulties and remain focused on the longer-term positive outlook for the region.

    Emerging Markets Equity: Are We in for a Rebound?

    2018 may have been difficult for emerging markets, but Sr. Portfolio Manager Patricia Ribeiro has three reasons to look forward to a better 2019.

    Amidst Market Turmoil: Don’t Overlook the Long-Term Case for EM

    Notes from the Global Growth Equity Desk

      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.