“Jonathan has advised us for 5 years and always provided consistent, truly independent thinking with emphasis on capital preservation”

Tim Bacon (CEO, Colville Estate) and Marylyn Bacon (Kent) (2011)

Emerging markets' index

Posted by jdavis on August 31, 2014

The other asset class which was majorly out of favour of asset managers was Emerging Markets' shares ie Brazil, Russia, India, China etc. The share prices had fallen considerably from 2011 right through to January/February of 2014 (in aggregate).

We started building sizeable holdings in late 2013. There was, as I say, a continued slight fall for several weeks but since early February, this asset has soared over 20% (in US$).

After years of underperforming Developed Market's shares it seems to us that the closing of the gap has well and truly started and will continue perhaps for years. We have asked, in these updates, from an investing point of view, why are you so interested in UK and US shares, for example, which have been up for years? We would rather be interested in assets which had been hammered and nobody wants them.




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