Emerging Market Equities Outlook

A number of factors should be considered when evaluating the wisdom of equity investing in the emerging markets today.Andrew Swan,head of Asian Equities and portfolio manager with BlackRock,the world's largest money manager,lists the following:
1.Valuations are very,very defensive;
2.Most investors are out of the asset now;
3.The Fed is changing directions,getting more dovish.*
Improving momentum in the EM has just been for the past two months,said Mr.Swan.What you've seen is currencies appreciate and capital starting to come back to these markets.I do see growth weakening for the moment outside of Asia.*
Exports have been a very big headwind.If we do get a weaker dollar and higher materials pricing,global trade could start to pick up later this year,and that would benefit the EM,Mr.Swan pointed out.*
iShares Emerging Markets ETF (EEM),iShares Asia/Pacific Dividend ETF (DVYA)