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So what we need such a big deal yesterday that the S&P 500 finally hit an all time record couple of week and a half -- about after the doubted what emerging markets just can't get there.
They just wrapped up their worst.
Quarters since 2008.
The emerging market indexes tumbled more than 2% so far this year while -- markets have been jumping double digit percentages so.
Is it time to get out.
-- time to get and joining me now is Derrick -- -- Wells Fargo advantage emerging markets fund manager he's got.
I'm a completely different.
View that he looks a different through different prison here at.
I would say that we started to see big inflows in January back into -- funds and I thought there either late or early which is it.
In January that you -- a couple things happening and then through the first quarter.
If you look at 2012 what happened was the market in emerging markets became very polarized you if you.
Sectors that did really well consumer staples consumer products particularly how -- became very expensive and a few sectors like metals and mining.
-- did very poorly and -- metals and mining are huge part of the benchmarks so emerging markets.
Really being driven by quite a small piece of the benchmark.
We'll be seeing in 2012 is there is very expensive consumer.
-- staples companies.
Have begun to come down to reality from the valuation standpoint but the mining companies still aren't doing anything.
So the index is a whole.
As we usually slid through the through the quarter but valuations on very high quality stocks that have have gotten much much better how do you define an emerging market because there are different opinions on this.
You know I think we where we are benchmark against the MSCI emerging markets index but you're right there are there are very different opinions where his career in his career really -- market -- -- What about Taiwan.
And our view is we're looking for four companies.
That get their competitive advantage from sitting in fast growing.
Quickly developing markets in our view is that Korea.
For instance -- that because.
They're competitive advantage comes from sitting in that economy -- -- -- cost -- market.
As you know to your point about how 2012 was pretty good.
Twenty yes so we're looking your fund was up about 12% -- every year it's down one point 7% year to date let's take a look at some of your biggest holdings.
You mentioned Taiwan Taiwan semiconductors in their you've got China Mobile.
Grupo Televisa -- which of course is -- south American companies Samsung.
As well -- Robert Vesco these are names that are well known for anybody -- even started to dip into so called emerging markets but.
What about this term -- -- markets Derek.
Frontier markets when I hear those names I think Egypt Kazakhstan on Argentina.
And then and then what Vietnam is very popular to talk about -- fit into the so called emerging market.
They tend to be a bit of Venetian from a friend from for a classic emerging markets investor.
But a very important -- so for instance I was in Nigeria.
Just the end of last year looking at at banks and some of the consumer product companies.
I'm -- we think there's incredible growth in Africa.
-- trade with China continues to grow.
Is that market begins to develop there's some great opportunities Vietnam's another another example of long term growth stories but you have to have to remember.
The -- are much less stable and much less developed.
Financial markets and much less developed economies so that correspondingly a lot more risky and we only really using.
It's been displaced -- -- -- Happy holiday weekend thank you Derek.
Thank you -- -- when this Wells Fargo advantage emerging markets equity fund manager will put all of his information on the FaceBook dot com slash list Clement -- -- story --
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