Trump has also threatened free trade agreements which has
caused emerging market stocks to decline.
Not exact matches
China's surprise decision to revalue the yuan as it tried to contain the
stock market turmoil
caused the currency to drop the most in 21 years last month, triggering exchange - rate declines elsewhere in the
emerging world on concern that a weaker yuan will hurt countries exporting to China.
Indeed, investors have
cause to celebrate, as global
stocks are up over 20 % for the year, with
emerging market stocks leading the way.
Curiously, even the hint earlier this year that the Fed would be dialing down its massive stimulus program
caused stock markets in a number of
emerging nations to stumble.
While the U.S. Fed's quantitative easing program has
caused a pullback, Excel Funds portfolio manager Christine Tan points out that
emerging market stocks are now 10 % lower than their historical norms.
There are plenty of reasons why the region struggled, including slowing growth in China (the country saw its GDP fall from about 11 % in 2010 to around 7.7 % in 2015), falling commodity prices and political instability, which
caused investors to buy more American
stocks and less
emerging market ones.
Another example is a recent switch of the Vanguard
Emerging Markets ETF's (VWO) underlying index from MSCI to FTSE, which
caused all South Korean
stocks to be removed from the fund.
Worries over slowing economic growth in the
emerging markets have
caused stock prices to stagnate this year, and that has naturally affected small - caps.
Moore, meanwhile, compares current
market conditions to what happened in 1998, when the
emerging popularity of technology
stocks, combined with the fallout from the collapse of Russian and Asian financial
markets,
caused REIT
stocks to be severely undervalued.