Bangkok: The renaissance in volatility over the last few months has created an opportunity to buy emerging-market stocks amid prospects for further growth, according to Titus Wealth Management.
“Our savviest clients are considering the recent two-months volatility as opportunities to add to, or initiate, positions that are perceived to perform the best over the next three to five-plus years," Eric Aanes, president and the founder of Titus Wealth, which has $500 million in assets under administration, wrote in an email interview. Emerging markets and the US tech industry “are the areas that will see the greatest degree of organic growth," he said.
The MSCI Emerging Markets Index of stocks has dropped almost 9% from a record high reached in late January amid concern an escalation in trade friction between the US and China will damp global growth. The gauge rose 0.2% as of 10.30am in Singapore on Wednesday. The historical volatility on the measure is near the highest level since November 2016.
Among developing nations, India stands out based on the country’s growth outlook and demographic potential, Scot Lance, Titus Wealth’s managing director, wrote in the same interview. The firm recommends investors take a “neutral stance" on Chinese stocks due to decelerating growth and an aging population, in addition to the trade war risks, he said. Bloomberg