Institutional Portfolio Manager Abhijeet Singh joins the show today to take us through the current landscape of emerging markets around the world, and to discuss the investment themes shaping Fidelity Emerging Markets Fund. Abhijeet points out that a potential U.S. rate cut could benefit emerging markets by alleviating pressures from a strong dollar and high U.S. rates, which have historically posed challenges. He highlights specific regions like Brazil and Mexico, where maintaining higher interest rates has helped stabilize currencies despite well-controlled inflation. He contrasts the investment appeal of countries like China, with attractive valuations amid economic stabilization efforts, against India, where high valuations have tempered investment enthusiasm. In terms of sectors, he favors materials and consumer sectors but advises caution in tech due to inflated valuations. He highlights the benefits of a balanced growth at a reasonable price strategy, which positions the Fidelity Emerging Markets Fund to capitalize on diverse opportunities while managing risk and global uncertainties. 

 

Recorded on July 12, 2024.