Rebounding emerging markets equities and exchange-traded funds are one of this year's most compelling investment stories. So compelling is the emerging markets rally that investors are piling back into the very ETFs they could not wait to abandon.
At least three factors – the weaker dollar, rebounding commodities prices and China's economic recovery – have some market observers waxing bullish about developing world stocks and ETFs.
“The Federal Reserve (Fed) has signaled it is set to keep rates on hold for now. This has lowered the near-term risk of EM capital outflows, weakened the U.S. dollar and boosted oversold EM currencies. Also supporting EMs: firming oil prices, fading global recession fears and signs China’s economy may enjoy a cyclical rebound,” said BlackRock, the world's largest asset manager and ETF issuer, in a recent note.
Emerging ...
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