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Equity turmoil: Neither a trend nor a structural shift
By Peter Garnry
Emerging market equities are down some 14 percent since their peak in October. But Saxo Bank's Head of Equity Strategy, Peter Garnry says this is neither a new trend nor a structural shift. And the correction we're seeing is already providing opportunities.
Peter points out that the fundamentals in many emerging market economies are far better than the recent stock market volatility might suggest. You often see major capital outflows back into developed markets when there are these kinds of shocks; everyone runs to the same exit at the same time. He says this is just a temporary situation.
This is not the time to panic, according to Peter. There are also some really "stand-out" markets out there, such as Indonesia. Even the S&P 500 is down by neary 6 percent this year but the Indonesia stock market is still in positive territory. The Mexican market is down but he's confident things will greatly improve here too as the country's fortunes are tied to the improvement we're seeing in the US. Mexico, he says, will continue to take market share from China and that will ultimately benefit its stock market.
01:51 minutes
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