Emerging Markets Fight Through Volatility and Headlines

2019 Midyear Insights

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.

Transcript

Emerging Market Updates

Get the latest from our Emerging Markets Equity team.

Explore More
  • Related Articles
  • More From Author

Finding Global Small-Cap Opportunities in Uncertain Markets

Senior Portfolio Manager Trevor Gurwich explains why the larger opportunity set and domestic focus of global small-cap equities make them well positioned to weather market pressures in the current environment.

Opportunities in Emerging Markets Small-Cap Investing

Senior Portfolio Manager Patricia Ribeiro explains how adding small-cap stocks to an emerging markets (EM) allocation may improve returns, provide portfolio diversification and reduce overall portfolio volatility.

A World of Opportunities

Sr. Client Portfolio Manager Laura Granger discusses ways to find growth opportunities outside the U.S. in a decelerating growth environment.

    Opportunities in Emerging Markets Small-Cap Investing

    Senior Portfolio Manager Patricia Ribeiro explains how adding small-cap stocks to an emerging markets (EM) allocation may improve returns, provide portfolio diversification and reduce overall portfolio volatility.

    The Importance of SDG Investing in Emerging Markets

    Learn why we believe investors may achieve alpha with impact without compromising solid returns.

    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.

      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.

      References to specific securities are for illustrative purposes only, and are not intended as recommendations to purchase or sell securities. Opinions and estimates offered constitute our judgment and, along with other portfolio data, are subject to change without notice.

      FOR INSTITUTIONAL USE ONLY | NOT FOR PUBLIC USE