EM sell-off a buying opportunity, says Ada

Changing times

emergingmarkets-pa
Emerging markets have strong growth prospects

What a difference a decade makes. A savvy investor looking at emerging markets in 2003 noticed several tailwinds: trade integration of China; normalisation of balance sheets after the 1998 crisis; a new bullish cycle in commodity prices and falling real yields in the US.

The next five years saw the MSCI Emerging Markets Index post compound annual returns of 36%. By 2007 investors were rushing to emerging markets.

Then came the global financial crisis, rooted in the developed markets but inevitably