After a phenomenal 2017, the last eight months have been painful for emerging market investors. However, despite this period of negative performance, we believe this year’s downdraft could lead to opportunity.
With the fourth quarter in full swing, not only are the holidays approaching, tax season is coming up as well. This is the time of year when many financial advisors talk taxes with their clients, especially if those clients have capital gains and if there is the potential for tax loss harvesting.
To put it lightly, 2015 and recent years have been tough for emerging market allocations. Although this asset class has been under significant pressure, we do not view this as a reason to jump ship. In our view, the 2015 sell-off poses an opportunity to take control of your allocations rather than continue to hold on to a region that has underperformed.
China is at the center of global market fears. A core concern is that China is slowing down its growth rate or transitioning from an infrastructure- and investment-led economy to more of a consumption-led and services-oriented economy.