Don't follow the herd exiting emerging markets says BlackRock

|By:, SA News Editor

Investors “are selling emerging markets which have very low valuations, significant dividend yields but have underperformed in recent times ... [for developed markets] which have relatively high valuations, potentially limited long-term earnings growth and where markets have just gone up rather fast," says Sam Vecht, a portfolio manager at BlackRock Emerging Europe Trust.

Mostly bearish on emerging markets in general and Turkey in particular over the past years, Vecht and team have turned bullish in the past few months, citing low valuations and high interest rates (high rates can go lower; zero rates can't).

EM ETFs: EEM, VWO, DEM, EDC, DGS, EDZ, EEMV, SCHE, EEB, EDIV, IEMG, DVYE, EEV, EWX, BIK, BKF, PIE, ADRE, HILO, EUM, FNI, EET, GMM, PXH, EEMS, BBRC, EELV, DGRE, FEMS, EEME, EMDD, BICK, EMCR, DBEM, FEM, EWEM, EVAL, EMBB, TLTE, EMLB, FNDE, EEHB, EMHD, EMDG, EGRW, EMSA, EMFT, QEM, EMDR, QDEM

Turkey ETFs: TUR