China Shares Cheap As Emerging Markets Prepare for Second Half Run

July 18, 2014

Compelling valuations and the return of individual investor allocations will help propel emerging markets stocks in the second half of 2014, said Julie Dickson, Head of Equities at Ashmore Group. Dickson said emerging market shares were hit following the Fed's "taper talk" but proved to be resilient, which should serve them well if the Fed raises rates earlier than expected. She also said that the market has been too bearish on Chinese stocks considering the slew of positive reforms going on. Finally, Dickson said that higher commodity prices will help nations like Brazil and Russia, yet both countries still face political risk.