Back to top

Real Time Insight

Emerging Markets are hot again! Since the beginning of April, investors have poured in $4.2 billion in iShares MSCI Emerging Markets ETF (EEM - ETF report), making it the top asset gainer for the period.

Among single country ETFs, India ETFs have seen huge investor interest this year, while Indonesia, Philippines and South Africa also saw asset inflows. On the other hand, China funds have remained out of favor this year.

So, what happened? Most emerging markets were battered last year as foreign investors rushed for exits with the start of taper talk.

The trend reversed this year with investors returning to emerging markets as they realized that interest rates in the developed world were not going up as earlier feared.

But that’s not the only reason; there have been a number of other positive developments that resulted in investors’ recent enthusiasm. In many cases, politics/election hopes have been a major factor.

Indian stocks and the currency have been euphoric on hopes of a new pro-business, reform-friendly government led by Narendra Modi (election results due tomorrow). Small-cap India ETF (SCIN - ETF report) has soared more than 30% in the past 3 months.

Indonesian voters are expecting a win for the opposition party--led by Joko Widodo--who has a reputation for effective governance. Brazilian stocks have risen as the voter support for Dilma Rousseff has been declining.

Macroeconomic fundamentals also appear to be improving as some of the measures taken to combat inflation and narrow down current a/c deficit have been successful.

Do you think emerging markets can continue to surge? Are you investing in emerging markets this year; and in broader or single country funds or in EM stocks?


Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 DaysClick to get this free report >> 
 

Zacks Releases Their 7 Best Stocks for August, 2014

These 7 were hand-picked from the list of 220 Zacks Rank #1 Strong Buys with earnings estimate revisions that are sweeping upward. Their stock prices are expected to rise sooner than the others.

Today, this Special Report is available to new Zacks.com visitors free of charge.

Close This Panel X

Please login to Zacks.com or register to post a comment.

New to Zacks?

Start Here

Zacks Investment Research

Close

Are you a new Zacks Member or a visitor to Zacks.com?

Top Zacks Features

My Portfolio Tracker

Is it Time to Sell?

One of the most important steps you can take today is to set up your portfolio tracker on Zacks.com. Once you do, you'll be notified of major events affecting your stocks and/or funds with daily email alerts.

More Zacks Resources

Zacks Rank Home - Evaluate your stocks and use the Zacks Rank to eliminate the losers and keep the winners.

Mutual Fund Rank Home - Evaluate your funds with the Mutual Fund Rank for both your personal and retirement funds.

Stock/Mutual Fund Screening - Find better stocks and mutual funds. The ones most likely to beat the market and provide a positive return.

My Portfolio - Track your Portfolio and find out where your stocks/mutual funds stack up with the Zacks Rank.

Zacks #1 Rank Top Movers for Zacks #1 Rank Top Movers

Company Symbol Price %Chg
RPC INC RES 24.91 +8.35%
LITHIA MOTO… LAD 94.59 +4.60%
DELTA AIR L… DAL 39.15 +3.90%
FLAMEL TECH… FLML 14.51 +3.50%
SOUTHWEST A… LUV 28.87 +2.92%