Will Emerging Stocks Get a Developed-World Lift in 2014?

The failure of emerging economies to piggyback on the rich-world recovery this year is giving investors pause, despite enticing emerging-market (EM) valuations. But investors shouldn’t underestimate the power of this normally symbiotic relationship—or the upside potential in EM stocks next year on even a modest pickup in EM economic activity.

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Sugar: A Sweet Spot for Emerging Market Investors

Sugar consumption has often been seen as a mark of affluence. But for emerging market investors, knowing how sugar is consumed can also be a guide to the successful investments of the future. We argue that only on-the-ground grassroots research can provide the knowledge needed to find these investment sweet spots.

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How Will Latin America Weather a “Sudden Stop” in Investment?

Since May, over one-quarter of the past five months’ foreign portfolio investment into emerging markets has been withdrawn, according to the latest available data from Emerging Portfolio Fund Research. For the Latin American economies, this is likely to result in slower growth, but the impact may be milder this time around.

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Emerging-Market Currency Returns: Fact vs. Fiction

By Paul DeNoon (pictured) and Kenneth Colangelo Emerging-market (EM) currencies have long been a popular investment theme. It’s commonly assumed that attractive returns can be earned from the appreciation of EM currencies versus the dollar. The truth is a bit more complicated.

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Looking for Growth? Go Small and Global

Liliana Castillo Dearth (pictured) and Bruce K. Aronow In the hunt for growth in today’s low-growth world, up-and-coming small- and mid-sized companies are a good place to start. But you need to look everywhere, from Indiana to Indonesia.

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Big Numbers Obscure Emerging Market Trends

Big is not necessarily beautiful when it comes to forecasting emerging markets. In fact, the kind of big numbers that are often bandied around can actually make it harder for investors to understand what’s really going on. We think there is a better way.

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Will Emerging-Market Stocks Close Gap with Global Equities?

Companies in emerging markets are more profitable and less debt burdened than their developed-market peers, and their shares trade at a deep discount. So when will emerging-market stocks close the gap with global equity markets?

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Emerging-Market Debt: Pure High-Yield Strategies Come of Age

We believe investors should be thinking about emerging-market debt in terms of credit quality buckets (investment grade or high yield) rather than sectors (sovereign or corporate). For some types of investor, pure high-yield strategies can offer significant advantages.

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Emerging-Market Debt Offers More than One Kind of Diversification

One key attraction of emerging-market debt is that it can help investors to diversify existing portfolios of developed-market fixed-income securities. But there’s more than one kind of diversification, and more than one way to approach the opportunity, depending on each investor’s objectives.

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Emerging-Market Debt: Pure High-Grade Strategies Gain Popularity

Investors in hard-currency emerging-market (EM) bonds are starting to change the way they think about the opportunity. For some, this means moving to investment-grade-only strategies.  

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