BRASILIA/ SAO PAULO, Dec 5- Brazil's central bank said on Thursday its string of six interest rate hikes have had a lagging effect on inflation, signaling policymakers could be ready to slow one of the world's most aggressive monetary tightening cycles.» Read More
James Ross, senior portfolio manager at Alliance Bernstein, tells CNBC, "The long-term bull story for emerging markets is definitely there because the growth rates are going to be twice the growth rates for developed markets."
Brazil, Russia, India and China – together termed BRICs have been an investment disaster and were a marketing-led concept , according to John-Paul Smith, emerging markets equity strategist at Deutsche Bank.
Not only has Brazil been growing at an average rate of 5% while the US economy flat lines, but Brazil seems to have much more scope for growth in the future.
James Rickards, Senior MD at Tangent Capital expects a war against Iran, but not before the U.S. elections.
So far this year, the Bombay Sensex is up nearly 15 percent and is outperforming the S&P 500. Geoffrey Dennis, global emerging markets strategist at Citi, offers insight.
Sound corporate earnings, cheap valuations and Russia’s entry into the World Trade Organization make the country's equity market stand out among its emerging-market peers, fund mangers say. Russian stocks, for example, are the cheapest among the equity markets of the BRIC countries – Brazil, Russia, India and China.
Russia has yielded many leading industrial companies that rank among global leaders in mining, metallurgy, petrochemicals and telecommunications. Despite the rapid development of the regional economy and the strides made over the past 20 years, WTO membership promises to be an important catalyst for growth in the Russian market.
Manpreet Gill, Senior Investment Strategist, Standard Chartered says investors need to focus on the fundamentals when investing in emerging markets. He likes local currency governments bonds in Asia.
There are plenty of investors and analysts who are optimistic. After three straight months of outflows, emerging market equity funds tracked by EPFR Global attracted more than $700m of investments in the first two weeks of July, reports the Financail Times.
Chatib Basri, Chairman of the Indonesia Investment Coordinating Board says the country needs to move away from its dependence on cheap labor and natural resources, and towards a productivity-driven economy.
Chairman, Goldman Sachs Asset Management
Adolfo Laurenti, Deputy Chief Economist & MD, Mesirow Financial, says BRIC economies face structural changes and that they need a new recipe for growth.
With ample oil and gas, Russia has the foundation to fuel its economic growth, while China and India are already suffering from power shortages. Brazil has a chance to excel but it is too soon to tell.
John Hailer, President & CEO, Natixis Global Asset Management says investors have gone back to traditional ways of investing as events in the last few years have scared them.
John Hailer, President & CEO, Natixis Global Asset Management says headlines continue to drive market sentiment.
The unresolved euro zone crisis, slowing growth prospects and currency depreciations have created a risk-off environment that makes investors think twice about emerging markets, Pablo Goldberg, Global Head of Emerging Markets Research at HSBC told CNBC’s “Squawk Box Europe”.
Paul Gruenwald, Chief Economist, Asia Pacific, ANZ expects China's interest rate cuts to feed through and keep economic growth above 8% for the rest of the year.
Russia is setting aside up to $40 billion for this year and next to shore up the economy in case the crisis in the euro zone escalates and spreads, and is dusting off a plan that would allow the government to recapitalize the country’s banking system.
"A key theme for us has been ... that many large emerging economies look structurally weaker in their own right," Maya Bhandari, director, global macro strategy, Citi, told CNBC. Bhandari also said India needs lower interest rates.
"Inflation is slowing faster than was expected. That allows policymakers to put their feet even more on the gas and try and put a floor under growth," Frederic Neumann, co-head of Asian economic research at HSBC, told CNBC.