Morgan Stanley: ‘Real Opportunity in EMs’

Emerging market assets have suffered through a brutal selloff, but now the sentiment tide is taking a sharper turn toward the once-shunned segment.

“It’s been a tough 12-18 months for emerging markets. We find that positioning in these markets just broadly across the region is at its lowest point in years,” Gokul Laroia, co-CEO for Asia Pacific at Morgan Stanley, told CNBC.

“There’s good reason for this. These markets are experiencing a growth slowdown. I don’t believe that is going to reverse itself anytime soon,” Laroia said. But he added, “at this point we feel these markets are under owned for sure, undervalued selectively and present opportunity. And over the next 12-18 months, we’re very positive. We think that this cycle is going to turn.”


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