A lower rate environment this year will boost the thesis for investing in emerging markets, according to Christine Phillpotts, a portfolio manager at Ariel Investments.
Phillpotts, who manages Ariel's Emerging Markets Value and Emerging Markets Value ex-China strategies, told CNBC's Mike Santoli at Berkshire Hathaway's annual shareholder meeting that there are several reasons why emerging markets should outperform in 2024 and beyond.
For starters, a lower interest rate environment would mean that investors would increase flows to ex-U.S. regions, including emerging markets.
The portfolio manager noted that valuation discounts for emerging market equities are at all-time lows, based on a comparison of the MSCI Emerging Markets Index versus the S & P 500.
For investors interested in artificial intelligence beneficiaries, Phillpotts highlighted that key opportunities in emerging markets lay within the picks-and-shovels plays that "will power the AI revolution."
Persons:
Christine Phillpotts, CNBC's Mike Santoli, She's, Ariel's, Phillpotts, Warren Buffett's
Organizations:
Ariel Investments, Federal Reserve, Ariel, China
Locations:
China, Berkshire, U.S