My series of columns last autumn focused on various unfashionable sectors where sentiment trailed fundamentals. The column on emerging markets ('Emerging from the gloom', 4 October 2013) suggested long-term investors should buy the sector. Despite outperformance year to date, I suggest investors have not missed the boat as their best moment is yet to come.
Poor sentiment
Investors are understandably cautious about emerging markets. Economic growth rates have been slowing - with concern focused on China. Various countries' finances have been deteriorating. Meanwhile, there has been no shortage of commentary and uncertainty about the extent and speed of the Fed's intention to taper its quantitative easing (QE) programme - the prevailing view being that these markets have particularly benefited from this largesse.