Please note that tax, investment, pension and ISA rules can change and the information and any views contained in this article may now be inaccurate.
Investors see value in emerging markets
A third quarter survey from investment professionals body CFA UK shows institutional investors are seeing increasing value in emerging market shares following a widespread sell-off earlier in 2018.
Emerging market equities are seen by 53% of respondents as being undervalued, up from 42% in the second quarter. By way of contrast, developed market stocks were seen by 65% of respondents as being overvalued.
About half of the respondents saw gold as being fairly valued, with 76% seeing corporate bonds as overvalued and two thirds seeing government bonds as overvalued.
CFA chief executive Will Goodhart says: ‘Not all has been positive for emerging market equities recently; we’ve seen raising rates, a strong dollar and US trade tensions – all of which do not bode well for them – and we may see investors’ perceptions shift to a more neutral position in the coming months. Our respondents continue to see these as uncertain times.’ (TS)