Are you bullish or bearish on EME going into 2017?
We are never bullish or bearish. We believe that, if we look hard enough, we can always find reasonably priced companies with strong balance sheets, secular growth opportunities, durable competitive advantages and savvy management teams. Rather than spend time formulating a market thesis to guide our decisions, we spend our time doing fundamental company research.
With increasing talk of trade agreements not being approved and protectionism seemingly ramping up, do you see this as a threat to global trade and hence a slowing of demand for the products exported by emerging markets?
Rather than speculate on potential near-term threats, we prefer to focus on long-term opportunities in which we have confidence. Over time, economic growth boils down to two main factors: expanding population and improving productivity. By and large, the developing world continues to look relatively good on both counts. Trade barriers could dent near-term growth, but won’t materially damage emerging markets’ comparatively attractive long-term prospects.
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