In an interview with Citywire Selector, Todd McClone, portfolio manager on William Blair’s emerging market strategies, explained why emerging market investors should take a close look at Argentina, noting recent changes in the country’s government and policies.
“Investors have been very underweight Argentina because it was uninvestable for many, many years, and now it’s back on the radar screen and the policies are moving in the right direction and the market is responding,” McClone said.
McClone also discussed the possibility of U.S. interest rates hikes this year and the impact they could have on emerging markets. He said historically when the U.S. Federal Reserve raised rates as advertised, emerging markets outperformed. McClone believes we could see two rate hikes this year and in the event that they occur, emerging markets will be able to withstand them.