Navigating impact of geopolitical tensions in emerging markets
Michael McGaughy, Head of Research and a Portfolio Manager at Fusion Wealth Management says financial crisis in emerging markets are typically more idiosyncratic, stressing that a political upheaval is quite another. He believes it is crucial for fund managers to get investors who understand the investment landscape and are comfortable with the strategy of investing during a crisis. He joins CNBC Africa for this discussion.
Tue, 11 Jun 2024 14:46:08 GMT
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AI Generated Summary
- Investing in crisis-hit countries can yield significant returns despite the inherent risks involved.
- Understanding the investment landscape and being comfortable with volatility are crucial for success in turbulent markets.
- Key factors such as valuation, technicals, fundamentals, and market behavior play a pivotal role in identifying investment opportunities in volatile markets.
Navigating impact of geopolitical tensions in emerging markets can be a risky yet potentially lucrative endeavor for fund managers and investors alike. Michael McGaughy, Head of Research and a Portfolio Manager at Fusion Wealth Management, shares insights on the strategy of investing in crisis-hit countries when conventional wisdom dictates otherwise. McGaughy emphasizes the need for investors to understand the investment landscape and be comfortable with the volatility and uncertainty that come with investing during a crisis. In a recent interview with CNBC Africa, McGaughy sheds light on his approach to identifying opportunities in volatile markets. With a focus on emerging and frontier markets, McGaughy explains the key factors he considers before making investment decisions. His experience and track record in the industry have led him to adopt a contrarian strategy that has the potential to deliver substantial returns in the long run. McGaughy's insights provide valuable lessons for investors looking to diversify their portfolios and capitalize on opportunities in turbulent times. Despite the inherent risks associated with investing in crisis-hit countries, the potential rewards make it an attractive option for those willing to take on the challenge.
