When the pluses and minuses are added together, the economic outlook generally favors emerging markets over mature ones. Economically sensitive value stocks in emerging markets are especially cheap. That sort of risk-reward balance, plus the high and possibly unsustainable prices of growth stocks, persuades some fund managers to make a contrarian call and buy down-and-out value stocks. G.M.O., an investment firm with a very-long-term outlook, expects emerging market value stocks to be the best asset class over the next seven years. Ms. Morrissey thinks growth stocks will continue to do well after the pandemic, at least for a while.

Source: International New York Times October 09, 2020 09:56 UTC