Preparing for the Unexpected
One of the lessons from history is that surprising and unpredictable things happen all the time, from elections and politics to natural disasters.
To prepare for when those things happen, it makes sense to consider not only China, but multiple emerging markets, such as India and Southeast Asia. Spreading investments is wise, and the scale and growth in these regions are remarkable.
Overall, emerging markets are much less efficient than developed markets, so active managers with deep research capability and strong due diligence may uncover excellent alpha opportunities.
Scott Berg, CFA®, portfolio manager for the Global Growth Equity Strategy, looks at it like this: “Where in the world are real fortunes being created? Where is there amazing underlying innovation that is creating true massive value?”
Through that lens, China—and Asia—is where the new billionaires are being born.