Emerging markets and precious metals both severely underperformed the major indices in 2013; however, through the first six months of 2014 they’ve rebounded with a vengeance.
Emerging Markets:
From a valuation, technical and psychological perspective, emerging markets still are at attractive levels, and deserve a hard look from any serious investor. The risks to emerging markets include a rapid increase in interest rates or a precipitous decline in global growth, both of which have yet to materialize.
Precious Metals:
An ugly duckling in 2013, precious metals have proven their collective mettle so far in 2014. Physical commodities have benefited from inflation concerns, as they represent a hedge against the weakening of various currencies. As for mining stocks, they used the drop in metal prices in 2013 to slow exploration and production and to lower operating costs.
Now that the precious metals prices are rising, mining companies are benefiting from the favorable economics here. Growth and inflation fears will likely continue to dictate the direction of precious metals and mining stock prices into year’s end.
To see which funds made our top 10 list of favorite BRIC ETFs, check out the new Fabian Wealth Strategies ETF Snapshot Report today!
If you have questions about this report and how it fits into your portfolio, please call our offices at 800-391-1118 to arrange for a consultation.
