Key Private Bank’s chief investment strategist, Bruce McCain, likes emerging markets for their high growth potential over the long run.
In the article, Emerging markets offer opportunity, McCain cites a number of financial trends that have made emerging economies the high-growth option for international investing. Outsourcing, a slowing rate of decline in unemployment, narrowing credit spreads and signs of stabilization in China all support the investment case for emerging markets.
McCain notes that broad diversification and specialized expertise are two important tools to help control the risks of investing in the emerging markets. He recommends the iShares MSCI Emerging Markets Index Fund (EEM) for broad diversification and greater control over capital gains.