Emerging market stocks are the most attractive as investors increasingly view the developed world with trepidation following the recent Brexit vote, along with terror attacks in the European Union.
Emerging market equities have outperformed those of developed nations this year and many analysts expect higher earnings.
“Sentiment is turning around for emerging equities, while valuations remain very low, and if you’re selective enough, this could be a good buying opportunity,” Morgan Harting, a senior portfolio manager at AllianceBernstein.
Financial analysts forecast developing stocks to gain 10 per cent over the next year, compared to 7.8 per cent for developed stocks.
Read more at Bloomberg.