2018 Midyear Global Outlook
What’s in store for the second half of 2018? Get the Ivy Investments team’s views in our Global Midyear Outlook.
Emerging markets are evolving into key sources of global growth, in part because they hold the dominant share of the world’s population. Billions of new consumers are entering the world’s economy and driving the consumption of goods and services. We see evidence of this growing consumer culture focused on "new economy" opportunities across key emerging markets. Those include China, with new demand for a wide range of consumer services, and India, with its reform-minded leaders focused on restructuring the economy and improving infrastructure.
Jonas Krumplys, CFA, and Aditya Kapoor, CFA, portfolio managers of Ivy Emerging Markets Equity Fund, believe there is growing demand from emerging market consumers for “new economy” goods and services.
Below are three examples of stocks that we believe may benefit from a “new economy” trend.
Taiwan Semiconductor (2330:TT)
Ping An Insurance (2318:HK)
Past performance is not a guarantee of future results. The opinions expressed are those of the Fund’s portfolio manager and are not meant as investment advice or to predict or project the future performance of any investment product. The opinions are current through December 31, 2017, are subject to change based on market conditions or other factors, and no forecasts can be guaranteed. The holdings discussed are for illustrative purposes only and are not intended as a recommendation to purchase, sell, or hold any specific security or to engage in any investment strategy.
Tencent, 5.5%, Taiwan Semiconductor Manufacturing Co., 3.5%, Ping An Insurance, 2.4%, of net assets as of 12/31/2017.
Risk factors: The value of the Fund’s shares will change, and you could lose money on your investment. International investing involves additional risks, including currency fluctuations, political or economic conditions affecting the foreign country, and differences in accounting standards and foreign regulations. These risks are magnified in emerging markets. Investments in countries with emerging economies or securities markets may carry greater risk than investments in more developed countries. Political and economic structures in many such countries may be undergoing significant evolution and rapid development, and such countries may lack the social, political and economic stability characteristics of more developed countries. Investments in securities issued in these countries may be more volatile and less liquid than securities issued in more developed countries. These and other risks are more fully described in the Fund’s prospectus. Not all funds or fund classes may be offered at all broker/dealers.