Emerging-market assets are so cheap that they may be “the trade of a decade,” according to Research Affiliates, a sub-adviser to Pacific Investment Management Co., one of the world’s biggest money managers.
Bloomberg News reports that they’re joining a growing number of investors, including BlackRock, Franklin Templeton and Goldman Sachs Asset Management, who are turning bullish on emerging markets after three years of underperformance.
With borrowing costs at the highest levels since the depths of the global financial crisis, bond investors are being compensated for challenges ranging from falling commodity prices to China’s economic slowdown, BlackRock said Tuesday.
“The exodus from emerging markets is a wonderful opportunity -- and quite possibly the trade of a decade -- for the long-term investor,” Christopher Brightman, chief investment officer at Research Affiliates, said in a post on Pimco’s website Wednesday. “We are increasingly confident of our positioning in emerging market stocks and bonds.”
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