Seafarer's Foster: Short-term volatility is masking emerging markets' opportunities

Money Life with Chuck Jaffe

Andrew Foster, chief investment officer at Seafarer Capital Partners, is seeing a recovery in earnings and fundamentals in emerging markets, and that means that current events are creating froth and noise but that emerging markets should deliver over the intermediate to long-term. Foster says that investors looking to make quick trades will get burned in emerging markets, but says that the earnings recovery is broad-based by both country and by sector, which is encouraging. Foster also gives his take on China, on whether international diversification will pay off better during times of great volatility and more. Juan Leon, senior investment strategist at Bitwise Asset Management, checks in on how crypto currency — which was off more than 20 percent as the market was heading into Monday's 3 percent drawdown — has responded, and how investors should consider the volatility of crypto, particularly as they see it traded over the weekends, when most other assets are static. The market's big moves wiped out a few strong weeks for small-cap stocks, but that is one reason why Todd Rosenbluth, head of research at VettaFi, pickseda small-cap fund as his ETF of the Week. And in the Market Call, Nancy Prial, co-chief executive officer at Essex Investment Management — manager of the 1290 Essex Small Cap Growth fund — goes into further detail on the current opportunities in small-company stocks.