Recent Setbacks in Emerging Markets

Don't Outweigh Long-Term Optimism

By Patricia Ribeiro & Nathan Chaudoin - October 2018

Introduction

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

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    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.

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