Frontier and emerging markets provide ample opportunity for investors at much lower valuations than developed markets, according to Marshall Stocker, a portfolio manager at Eaton Vance. Stocker said there’s a ‘50% off sale’ in those markets, which are trading at half of the valuations of developed markets. One of his favorite investments right now is Vietnam, where Stocker expects to see 15% to 20% growth for some companies. ‘Vietnam is in the process of removing the 49% ownership limits on stocks, so foreigners can now own up to 100% of stocks,’ explained Stocker. ‘They’ll be the country that benefits from the Trans-Pacific Trade Partnership the most.’ Stocker is also a fan of Burma, which he said has a growth rate of over 7%, and Romania, with a growth rate of 4%. ‘The nice thing about my business and my universe is I can carve out some great ideas, where you have great earnings growth, strong GDP growth, and not have to worry so much about what the Fed lift-off is going to do,’ said Stocker. But frontier market investors need to be selective, and there are several countries that Stocker won’t invest in right now. He spoke at Camp Kotok, an annual gathering of economists and money managers held in Maine.
Subscribe to TheStreetTV on YouTube:
For more content from TheStreet visit:
Check out all our videos:
Follow TheStreet on Twitter:
Like TheStreet on Facebook:
Follow TheStreet on LinkedIn:
Follow TheStreet on Google+:
source
