There’s a saying on Wall Street that the market can remain irrational longer than you can remain solvent. And there’s a widely held financial theory called “Reversion to the Mean” that asserts that eventually asset classes will return to their long term average in terms of several factors including price, price/earnings multiples, and their performance relative to other asset classes like U.S. stocks.
Reversion to the mean for emerging markets stocks has been a long time coming.
This week’s guest, Michael Kass who runs Baron Emerging Markets Fund believes their time has come after a very long cycle of underperformance.
Kass will make the case for an emerging markets resurgence, especially stocks in the two largest markets, China and India.
WEALTHTRACK Episode #1818 broadcast on October 29, 2021
Listen to the audio-only version here:
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MICHAEL KASS
- Portfolio Manager,
- Baron Emerging Markets Fund
- Baron International Growth Fund
- Baron New Asia Fund
- Baron Funds
ACTION POINT
KNOW YOUR SLEEP NUMBER AS AN INVESTOR
DAVID GARDNER’S SLEEP NUMBER QUESTION:
“What Number Would You Allow a Single Stock to Get at the Maximum as a Percentage of Your Overall Portfolio and Still Be Able to Sleep at Night?”
CONSUELO’S SLEEP NUMBER QUESTION FOR EMERGING MARKETS:
“What Is the Minimum You Would Allow Emerging Markets to Represent in Your Portfolio?”
ONE INVESTMENT
DECARBONIZATION PLAY
Buy Suzano S.A. (SUZ
STOCK MENTIONS
- Tencent Holdings Ltd ADR (TCEHY)
- Alibaba Group Holding Ltd ADR (BABA)
- ACM Research Inc. Class A (ACMR)
- Reliance Industries Ltd (RELIANCE) traded on NSE = National Stock Exchange of India
ARCHIVE
Michael Kass from the WEALTHTRACK Archives:
WEB EXTRA
NEW INVESTMENT DIRECTIONS
Baron Emerging Markets Fund Manager, Michael Kass recently launched Baron New Asia Fund to invest in the next generation of growth companies in Asia.
