"One cannot take a shotgun approach to investing in emerging markets. It really has to be a rifle."
| Michael Hasenstab|
*Photo by Jim Tweedie - Wyckoff-Tweedie Photography*
So argues Michael Hasenstab
, star Franklin Templeton
PM and Templeton Global Macro
executive vice president and chief investment officer, in his opening keynote remarks this afternoon at the 2016 Morningstar Investment Conference
at McCormick Place in Chicago.
Hasenstab calls emerging markets "the most unloved asset class in the last two to three years" and "one of the worst performing sectors." A packed crowd of advisors, fundsters, and other industry insider have turned out to to hear Hasenstab's take on the opportunities in emerging markets despite all those headwinds.
Hasenstab points to India, Indonesai, Malaysia, Mexico, and the Philippines as "very solid countries that are just mis-priced". And he points to Brazil as one of the "situations in distress where we can see a way out."
In terms of predictions, Hasenstab foresees more appreciation of the U.S. dollar (against other major currencies), worries about the fundamentals of U.S. Treasuries valuations, and does not expect a "hard landing" in China.
Also, in response to an advisor question about currency investing, Hasenstab clarifies that his team's approach is long-term.
"We would not refer to it as gambling," Hasenstab says, adding that currencies "ultimately reflect long-term econ fundamentals."
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