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

Sustainable Investing in Emerging Markets

There’s a lot of talk about ESG investing. However, few managers have focused on emerging markets—and that’s where we see a lot of potential.

U.N. Sustainable Development Goals Present Opportunities in Emerging Markets

By investing with the intention of helping to advance the Sustainable Development Goals, you can play a critical role in creating a more inclusive society.

Opportunities in China Amid the Trade War

Trade war aside, Sr. Portfolio Manager Patricia Ribeiro is still finding opportunities to invest in China. Find out how in her latest quarterly update.

    Sustainable Investing in Emerging Markets

    There’s a lot of talk about ESG investing. However, few managers have focused on emerging markets—and that’s where we see a lot of potential.

    Strong Rebound for Emerging Markets

    A change in Federal Reserve policy was beneficial for emerging markets. Find out where Sr. Portfolio Manager Patricia Ribeiro has seen positive shifts.

    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.

      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