Is It Time To Look Into Emerging Markets?

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Many of the world's greatest investors have been willing to buy at a time when the majority of the market was turning away from a particular sector. However, such a strategy is easier said than done, as most stocks loose value following news that suggests a period of financial trouble is on the horizon. This has been the case recently for emerging markets, which have been hit hard by turmoil in China and the recent downturn in demand for commodities. Still, some analysts believe that there are some opportunities to be had for shrewd investors willing to take on some risk.
Huge Decline
The MSCI Emerging Markets index has declined by 17.27 percent over the past year while the S&P 500 has gained 3.04 percent over the same period. Investors have been pulling their money out of developing economies after China reported slower than expected growth, which sparked concern over whether or not the nation will be able to transition from an export-based economy to one that relies on diversity. The strength of the US dollar has also been detrimental to foreign nations, especially those with large amounts of dollar-denominated debt.
Time To Invest?
For investors with a strong appetite for risk, now could be a great time to buy as many analysts believe that the greenback's strength won't last forever. Not only that, but emerging markets still have a lot of potential for growth in the long term, making them a good bet for traders who plan to hold on to emerging market investments for a significant period of time.
BRICs
When it comes to emerging markets, many investors tend to focus on BRIC investments, or Brazil, Russia, India and China. Those four have been considered growth engines in the emerging market space, but recent economic troubles suggest that some of those engines
may be stalling
. China, for example, recently posted its weakest quarter of economic growth since 2009. The nation's economic struggle may just be growing pains as the nation shifts its focus away from exports, but many investors are hesitant after this summer's market turmoil. Both Russia and Brazil have been hit hard by the sharp decline in commodity prices and political problems have cast a shadow of uncertainty over both nations' future. However, many investors are turning to India, where low oil prices have benefited the nation's economy. Not only that, but the Reserve Bank of India recently cut interest rates, a move that is likely to spur on economic activity. Asia While China still represents a lot of uncertainty for investors, Asia as a whole
isn't out of the question
. The Philippines has been a popular place for emerging market investors to place their bets recently as the nation has increased its spending in order to combat slowing economic growth. The International Monetary Fund estimated that the Philippine economy will grow by around 6 percent in 2015, a competitive rate of growth for emerging market economies. Taiwan is another Asian bet for investors looking to gain exposure to emerging markets as the nation's robust exports allow traders to benefit from rising consumer demand in places like China, the US and Europe. As Taiwan's main trading partner is China, the nation has suffered some setbacks due to China's economic weakness. However, some analysts argue that although Chinese growth is slowing, it still far outpaces that seen in a developed market, and investing in Taiwan offers some exposure to that growth without putting money directly into China.
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