Battered emerging markets (EMs) are the trade of a decade for long-term investors, according to an adviser to Pimco, one of the world's leading bond funds.
In a Thursday note on Pimco's website, Christopher Brightman, chief investment officer at Research Affiliates, said that EM stocks and bonds appeared cheap relative to historic price action as well as alternatives.
"The exodus from emerging markets (EMs) is a wonderful opportunity—and quite possibly the trade of a decade—for the long-term investor."
Research Affiliates has been a subadviser to Pimco for over a decade. Both investment businesses are based in Newport, California.
EMs have borne the brunt of the recent market turmoil, with the MSCI Emerging Markets Index down more than 7 percent year-to-date, amid slowing growth in China, the renminbi's depreciation, sinking commodity prices, Middle East tensions, and recessions in both Brazil and Russia.