While a global downdraft has affected nearly all segments of the market, emerging markets have been particularly impacted by a strong U.S. dollar.
Thus, emerging markets rallied in mid-December as the U.S. dollar weakened against other major currencies amid growing concerns of the U.S. economy seeing a recession, coupled with optimism around China’s lessened COVID-19 restrictions.
Plus, with emerging markets equities still trading at significant discounts, the valuations are attractive enough to offset the temporary issues in the markets.
With the dollar weakening, now could be an ideal time to buy in while emerging markets ETFs are still priced at a significant discount compared to broad U.S. equities. Three active ETFs that look compelling in the current market environment are the Matthews Emerging Markets Equity Active ETF (MEM), the Matthews Asia Innovators…
