It's not been all bad news for emerging markets
Emerging markets have had a tough year. Still, as investment guru Jeffrey Gundlach notes, they've still outperformed global indices.
Want to know where to invest for the next seven to 20 years? Buy emerging market equities, says DoubleLine's Jeffrey Gundlach. It's been a grim year for most asset classes including emerging markets yet overall they have managed to outperform global indices, notes Gundlach.
Gundlach is not bullish on the short term by any means. Europe's economic growth is "absolutely horrible", while export-sensitive markets such as South Korea are being hit particularly hard. He also notes that 75% to 80% of global markets are in a "death cross" pattern, which is an unpromising (if imperfect) technical indicator. "It is quite possible there will be a global recession," he says.
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Even the US, where growth has remained far healthier than elsewhere, with few signs of slowing growth outside the housebuilding and buying sectors, is not immune. At the start of 2018, Gundlach forecast that the S&P 500 would end the year with a loss, a call that now looks likely to prove correct.
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