Mark Haefele, the global CIO of UBS Wealth Management, speculated at CNBC as to why it's the perfect time for investors to consider engaging in emerging markets.
Haefele pointed out that while emerging markets have disappointed many in recent years, equities and stocks are in the middle of an historic rally.
His five favorable factors:
- Steadier Chinese growth because of government stimulus should ease concerns related to the previously unsteady trajectory.
- Commodity goldilocks as raw materials are neither too hot nor to cold.
- Growth gap returning as compared to developed nations is at three percentage points currently but should increase as Russia and Brazil recover from recessions.
- Profit growth in sight as earnings per share have stabilised and increased since 2012.
- A dovish Federal Reserve as they keep interest rates low after the uncertainty created by the United Kingdom referendum vote, Brexit.
Read more at CNBC.