Carl Delfeld of the Chartwell ETF Advisor
Emerging markets and the exchange-traded funds that track them may be vulnerable to the impact of the sub-prime problems according to a leader in emerging market investments.
“The biggest worry now is the psychological impact – and I emphasise psychological impact – of subprime,” Mr Mobius told FT.com in the website’s inaugural “View from the Markets” weekly video interview.
“I think a lot of people are focused on that and maybe have over-emphasised the impact of subprime.
“There’s no clear evidence that consumer spending is slowing down in America ... But now that it’s so much in the news it may have an impact on people’s propensity to invest. And so that could be a problem.”
Nevertheless, he said, some US investors were realising anew the value of diversification into developing countries. “[They] see emerging market currencies getting stronger against the US dollar, they see economies growing at a much faster pace – stronger than the US or Japan.”
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