NEW YORK (Reuters) - Investors should invest a portion of their portfolios in emerging markets as they diversify, but do so gradually, Citigroup's chief U.S. equity strategist said on Wednesday.
"There's some gains to be made in those places and the fundamentals of many emerging markets are still reasonably sound," Levkovich said at the Reuters Investment Outlook Summit in New York. "But if you do it all in a snap, you are probably going to buy stocks at the wrong time -- that's risky."
Levkovich said sharp declines seen in some emerging markets such as Turkey, India, Russia and Brazil were, in part, a result of retail investors' excessive hunger for yields.
"These people read somewhere that those markets were up 60, 70 percent, and decided to go in," he said. "Again, that's not necessarily a bad thing. Investors should diversify, but I'm against putting all eggs in one basket."
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