Implications of "Best Interest" Rule for Annuities
Aaron Levitt
|
With broker-dealers and agents now acting in favor of clients, investors may be...
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But emerging markets may have turned a corner based on the most recent data. Investors just need to take a look at how the American Funds New World A Fund (NEWFX) has performed. It’s only up 4.10% year-to-date, but after falling to $44.14 in mid-February, the fund has rebounded to over $52 – an 18% gain in just a few months.
Commodity prices are beginning to stabilize, which is positive for emerging markets. In addition to oil, gold, silver, copper and steel have started seeing a rise in values. Chinese imports rose 5.1% year-over-year in May, well ahead of economists’ prediction of -2.5%.
The credit environment looks good for emerging market economies too. The slow pace that the Federal Reserve has put on raising interest rates means that loosening credit could spread to other markets. Easing conditions could hit Asia and Latin America soon – a marked difference from the beginning of the year, which suggested that credit tightening was inevitable.
Last Friday’s weaker-than-expected payroll data made it very unlikely that an interest rate hike will happen this month, as hinted in the Fed’s earlier statement. Now it seems to be pushed back to next month at the very least.
All the bad news appears to have been priced into emerging market funds, so any good news translates into gains almost immediately. Supply and demand imbalances are starting to even out, while disinflation, another concern earlier this year, appears to be off the table. Going forward, expectations for growth in emerging markets should only get stronger.
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Aaron Levitt
|
With broker-dealers and agents now acting in favor of clients, investors may be...
Justin Kuepper
|
Let’s take a look at what sets China apart from other emerging markets,...
News
Iuri Struta
|
Check out the latest edition of mutual fund scorecard.
Find out why $30 trillon is invested in mutual funds.
Download our free report
Find out why $30 trillon is invested in mutual funds.
Download our free report
Find out why $30 trillon is invested in mutual funds.
Mutual Fund Education
Justin Kuepper
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Daniel Cross
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But emerging markets may have turned a corner based on the most recent data. Investors just need to take a look at how the American Funds New World A Fund (NEWFX) has performed. It’s only up 4.10% year-to-date, but after falling to $44.14 in mid-February, the fund has rebounded to over $52 – an 18% gain in just a few months.
Commodity prices are beginning to stabilize, which is positive for emerging markets. In addition to oil, gold, silver, copper and steel have started seeing a rise in values. Chinese imports rose 5.1% year-over-year in May, well ahead of economists’ prediction of -2.5%.
The credit environment looks good for emerging market economies too. The slow pace that the Federal Reserve has put on raising interest rates means that loosening credit could spread to other markets. Easing conditions could hit Asia and Latin America soon – a marked difference from the beginning of the year, which suggested that credit tightening was inevitable.
Last Friday’s weaker-than-expected payroll data made it very unlikely that an interest rate hike will happen this month, as hinted in the Fed’s earlier statement. Now it seems to be pushed back to next month at the very least.
All the bad news appears to have been priced into emerging market funds, so any good news translates into gains almost immediately. Supply and demand imbalances are starting to even out, while disinflation, another concern earlier this year, appears to be off the table. Going forward, expectations for growth in emerging markets should only get stronger.
Receive email updates about best performers, news, CE accredited webcasts and more.
Aaron Levitt
|
With broker-dealers and agents now acting in favor of clients, investors may be...
Justin Kuepper
|
Let’s take a look at what sets China apart from other emerging markets,...
News
Iuri Struta
|
Check out the latest edition of mutual fund scorecard.
Find out why $30 trillon is invested in mutual funds.
Download our free report
Find out why $30 trillon is invested in mutual funds.
Download our free report
Find out why $30 trillon is invested in mutual funds.
Mutual Fund Education
Justin Kuepper
|
Let's take a closer look at how ESG investments have outperformed during the...
Mutual Fund Education
Daniel Cross
|
While CITs and mutual funds share many similarities, there are some key differences...
Mutual Fund Education
Sam Bourgi
|
The phrase ‘bear market’ has been thrown around a lot lately, but it...