You are here: Home - Uncategorized -

ABN AMRO highlights emerging markets

0
Written by:
28/12/2007

ABN AMRO Asset Management has said that 2008 should be the year of emerging markets, particularly in Asia.

 David Kiddie, CIO Equities at ABN AMRO, said: “There is a lot of market talk about risk aversion, fear and gloom, but that can also provide opportunities when investing in equities.”He sees the best opportunities in the emerging markets, especially in parts of Asia. Across the board, equity returns are likely to be in the high single digits, in line with long-term averages. Kiddie’s focus for 2008 lies on Asia, where economic growth should continue at what he calls a reasonable pace.

Equity valuations are on the whole attractive and most countries’ finances are strong, benefiting from domestic demand, rising wages and buoyant exports.Kiddie said: “Asian markets, and emerging markets in general, are under-represented in many investment portfolios and that should change in the next 5 to 10 years.“China looks overbought and faces the risk of a short-term correction as a result of further action by the monetary authorities to cool the economy and rein in inflation. For investors, that could be an opportunity to add exposure.”Looking at global sectors, financials – this year’s worst-performing sector – is approaching a point where these stocks are becoming interesting again after the battering over the sub-prime debt crisis and the losses on mortgage exposure, and the fallout from the credit crunch.

Kiddie added: “You can expect more bad news and more volatility for the sector, but within the segment there are interesting dividend yields in the banking and insurance industry.”

Tagged:

Tag Box

Debt

Pension

Spending

Financial fitness

There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

Are you a first-time buyer looking for a mortgage?

Look no further, get the help you need by searching for your perfect mortgage

Which ISA is right for you? A round up of the six products available in 2017

From cash to innovative finance to lifetime, here's our guide to the ISA products available to savers this yea...

Guide to buy-to-let tax changes

In late 2015, former Chancellor George Osborne announced a range of  tax measures aimed at landlords, which t...

A guide to switching energy provider

All you need to know about switching from one energy supplier to another.

What will happen if rates change

How your finances will be impacted by a rise in interest rates.

Regular Savings Calculator

Small regular contributions can build up nicely over time.

Online Savings Calculator

Work out how your online savings can build over time.

Five fund tips for a 0.25% interest rate environment

With interest rates stuck at a record low 0.25% and expectations rates could fall to close to zero, here are ...

Protecting family wealth: 10 tips for cutting inheritance tax

Inheritance tax - sometimes known as 'death tax' - can cause even more heartache for bereaved families. But th...

Travel insurance: Five tips to ensure a successful claim

Ahead of your summer holiday, it’s important to make sure you have the right level of travel cover or you co...

Investing your money

Alliance Trust Plc gives you smart insight into how to invest your money

Money Tips of the Week

Read previous post:
TD Waterhouse reveals most-traded shares

Execution-only broker TD Waterhouse has released a list of the sectors and companies that were singled out as hotspots by...

Close