Wealth DFM’s Post

Lazard Outlook on Emerging Markets july 2024 • Emerging markets equities gained 5% in an eventful quarter, with surprise election results, AI optimism, and a resilient US dollar. • Our outlook is bright for the asset class: Accelerating growth, higher corporate earnings expectations, global monetary easing, and valuation discounts all bode well, in our view. • Our outlook for emerging markets debt is constructive, after mixed results in the second quarter. • Monetary policy, economic growth, fiscal policy, and valuations all favor emerging over developed markets debt, in our view.

The IMF forecasts that Emerging Markets will grow by an impressive 4.3% in 2025, while Advanced Economies (G7) are set to grow by a modest 1.8%. Faster growth often brings investment opportunities, but it also comes with unique risks—currency fluctuations, geopolitical factors, and higher volatility. However, the potential for higher returns could make these markets a valuable addition to your portfolio, especially for long-term investors seeking diversification. Investing in Emerging Markets isn’t one-size-fits-all. Please consider talking to a financial advisor to evaluate whether international investments align with your financial goals and risk tolerance. A well-planned strategy could help you harness global growth while managing potential downsides. Disclosure: Opinions expressed in third-party links may not reflect the opinions of Argosy Securities Inc. and are provided for educational purposes only. Please contact an Argosy Investment Advisor for investment advice at 905-709-7066 or toll free at 1-866-709-7066. #Investing #InvestmentStrategy #WealthManagement #MutualFunds #Stocks #Bonds #ETF

"Emerging Market Risks: A Balancing Act for Investors" Emerging markets (EMs) offer enticing investment opportunities with the potential for high returns. However, these markets also present unique risks that investors must be aware of before diving in. Here's a breakdown of some key emerging market risks to consider: Economic and Political Volatility: EMs are often susceptible to sudden economic swings and political instability. Factors like currency fluctuations, high inflation, and changes in government policies can significantly impact investments. Limited Liquidity: Unlike developed markets, EMs often have lower trading volumes, making it harder to quickly buy or sell assets without affecting the price. This lack of liquidity can challenge investors seeking to exit their positions quickly. Corporate Governance Concerns: Transparency and regulatory frameworks in some EMs might be less developed than in established markets. This can lead to issues like corruption, accounting irregularities, and weak investor protection. Currency Risk: The value of emerging market currencies can be highly volatile compared to established currencies like the US dollar. This can lead to significant fluctuations in the value of your investments, even if the underlying assets themselves perform well. Infrastructure Challenges: Emerging economies might have underdeveloped infrastructure, including limited access to reliable power, transportation, and communication networks. This can affect business operations and overall economic growth. Sovereign Debt Risk: High levels of government debt in some EMs can pose a risk of default, potentially leading to losses for investors. Mitigating the Risks: While these risks are significant, there are ways to navigate them: Diversification: Spread your investments across different emerging markets and asset classes to minimize exposure to any single risk factor. Invest for the Long Term: EMs can be more volatile in the short term, so a long-term investment horizon allows you to ride out market fluctuations. Research and Due Diligence: Thoroughly research potential investments and understand the specific risks associated with each market and company. Consider Investment Vehicles: Actively managed funds or ETFs that focus on emerging markets can provide diversification and expert management. Conclusion: Emerging markets offer exciting investment opportunities, but they also come with unique risks. By understanding these risks and taking steps to mitigate them, you can increase your chances of success in this dynamic investment landscape. www.BistInvest.com #BistInvest #Investment #EmergingMarkets #HighReturnsHighRisk #InvestSmart #EmergingMarketInvesting #EMInvesting #Diversification #LongTermInvestment #FinancialLiteracy #DoYourResearch #ManagedFunds #ETFs #GlobalInvestor

At such times of stress in the markets, it’s important to take a step back, review the fundamentals, and determine whether the current volatility is perhaps an overreaction or an expected correction after a long stretch of strong returns. Here are five views from Capital Group investment professionals assessing the latest, fast-changing market developments.

📉 Markets in Turmoil: What You Need to Know 📉 The global equity markets have experienced a sharp sell-off in early August, leading to a shift in investor sentiment from optimism to concern. Factors such as slowing U.S. economic growth, high interest rates, and high valuations in the technology sector have contributed to this apprehension. During these volatile times, it is crucial to review market fundamentals to determine if the volatility is an overreaction or a natural correction after a period of strong returns. Is the current volatility an overreaction, or a natural correction after a long stretch of strong returns? Here are insights from Capital Group investment professionals on the recent market developments. #MarketUpdate #Investing #WealthManagement #VisionaryWealthPartners

At such times of stress in the markets, it’s important to take a step back, review the fundamentals, and determine whether the current volatility is perhaps an overreaction or an expected correction after a long stretch of strong returns. Here are five views from Capital Group investment professionals assessing the latest, fast-changing market developments.

As monetary policy eases globally, a much more supportive and conducive environment is emerging for global small caps and emerging markets, explains Zenith Co-Founder and Investment Director, David Wright. #GlobalSmallCaps #SmallCaps #Markets #Investing #AssetAllocation #PortfolioConstruction #FinancialAdviser

The IMF forecasts that Emerging Markets will grow by an impressive 4.3% in 2025, while Advanced Economies (G7) are set to grow by a modest 1.8%. Faster growth often brings investment opportunities, but it also comes with unique risks—currency fluctuations, geopolitical factors, and higher volatility. However, the potential for higher returns could make these markets a valuable addition to your portfolio, especially for long-term investors seeking diversification. Investing in Emerging Markets isn’t one-size-fits-all. Please consider talking to a financial advisor to evaluate whether international investments align with your financial goals and risk tolerance. A well-planned strategy could help you harness global growth while managing potential downsides. Disclosure: Opinions expressed in third-party links may not reflect the opinions of Keybase Financial Group Inc. and are provided for educational purposes only. Please contact a Keybase Financial Advisor for investment advice at 905-709-7911 or toll free at 1-888-539-4246. #Investing #InvestmentStrategy #WealthManagement #MutualFunds

Emerging market equities continue to show resilience despite bouts of market volatility tied to elections and other factors. Get the latest insights and market outlook from Franklin Templeton Emerging Markets Equity: https://s.frk.com/4dulLRV. https://s.frk.com/4c5Pcsn

Emerging market equities continue to show resilience despite bouts of market volatility tied to elections and other factors. Get the latest insights and market outlook from Franklin Templeton Emerging Markets Equity: https://s.frk.com/4dulLRV. https://s.frk.com/3LKAX1q