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Investing in EMs: It's 'how' not 'when'

Identifying stocks that can weather market cycles to generate consistent returns is more important than timing entry into EMs.

Published Tue, Oct 18, 2016 · 09:50 PM

EMERGING market (EM) stocks have been experiencing a stunning revival as investors starved of yield in developed markets are increasingly enticed by growth opportunities in developing economies.

The MSCI Emerging Market Index returned 13.86 per cent, year-to-date, compared to a return of around 5 per cent for the MSCI World Index and 6.7 per cent on the Dow Jones Industrial Average. During a six-week period this summer, more than US$9 billion was invested in emerging market equity funds, the largest inflow over this time frame in three years.

Investors who have been holding back may now be wondering, is now the time to join the throng?

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