Emerging markets have taken a hard beating since President-elect Donald Trump's surprise victory in November saw the dollar soar, interest rates climb and U.S. equities near historic highs.
The most popular emerging markets exchange-traded fund (ETF), the EEM, whose top-weighted holdings include Samsung, Taiwan Semiconductors and Tencent Holdings, fell 6.51 percent in the fourth quarter. By contrast, the S&P 500 ETF gained 3.34 percent for the same period.
BNP Paribas Investment Partners' senior investment strategist, Daniel Morris, however, is not too concerned because he reckons the negative impact will be short-lived due to the maturity, diversity and size of EMs.
"All those fundamental reasons to like EM are there," Morris said Monday on CNBC's "Squawk Box," referring to the region's potential for earnings growth, revenue growth and lower margins. He added EM currencies remained undervalued against the dollar, which left room for them appreciate in the future.