Getting Comfortable with the Uncomfortable

GMO
By December 16, 2019 18:28

Getting Comfortable with the Uncomfortable

Asset Allocation Insights

Emerging Market Stocks: Getting Comfortable with the Uncomfortable

Owning emerging market stocks has been a frustrating experience recently. Since the start of 2018, the MSCI Emerging Markets index has fallen 9.5% in USD terms (3.1% local)1 while other markets, the S&P 500 in particular, have rallied. Emerging’s disappointing returns represent the continuation of a long trend of underperformance leading many investors to write off the asset class. We believe that is the wrong move as emerging market stocks – value stocks in particular – represent the best investment opportunity in an otherwise muted landscape. We know from experience that holding an underperforming asset is uncomfortable. At times though, it is warranted. We believe today is one of those times.

GMO
By December 16, 2019 18:28

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