While they tend to be quite volatile year to year, I have a positive view towards emerging markets (EEM) in general over the next decade.
The reasons are simple:
- Emerging markets have quite low current valuations by absolute and historical standards.
- On average, emerging markets have less debt than advanced nations (just watch out for dollar-denominated debt for some of them).
- The majority of emerging markets have faster GDP and population growth than developed countries, with some exceptions.
- As a whole they are becoming more consumer-oriented, more technology-focused, and less commodity-dependent.
- Volatility is