Will Emerging Markets Outperform the US in 2020?

Will Emerging Markets Outperform the US in 2020?

Posted On December 17, 2019 12:25 pm

U.S stocks are enjoying an unprecedented outperformance over emerging markets. Can it continue, or is now the time to rotate money overseas?  There is beginning to be the belief that if the trade tensions get resolved, and tariffs removed, it will renew global growth of which the biggest beneficiaries would be emerging markets.

Historically when stocks are in bull mode, bullish money managers will take on more speculative positions such as higher beta names, including increasing exposure to emerging markets.  On the other hand, investors are positioning themselves for lower stock prices, riskier assets such as emerging market stocks tend to underperform, particularly relative to developed markets.

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Steve Smith

Steve Smith have been involved in all facets of the investment industry in a variety of roles ranging from speculator, educator, manager and advisor. This has taken him from the trading floors of Chicago to hedge funds on Wall Street to the world online. From 1987 to 1996, he served as a market maker at the Chicago Board of Options Exchange (CBOE) and Chicago Board of Trade (CBOT). From 1997 to 2007, he was a Senior Columnist and Managing Editor for TheStreet.com, handling their Option Alert and Short Report newsletters. The Option Alert was awarded the MIN “best business newsletter” in 2006. From 2009 to 2013, Smith was a Senior Columnist and Managing Editor for Minyanville’s OptionSmith newsletter, as well as a Risk Manager Consultant for New Vernon Capital LLC. Smith acted as an advisor to build models and option strategies to reduce portfolio exposure and enhance returns for the four main funds. Since 2015, he has worked for Adam Mesh Trading Group. There, he has managed Options360 and Earning 360, been co-leader of Option Academy, and contributed to The Option Specialist website.