Emerging Markets: Opportunity, Trade or Value Trap?


EM: Opportunity, Trade or Value Trap?

Emerging Markets: Opportunity, Trade or Value Trap?

Investors who need high return assets to achieve high return targets have increasingly looked to emerging markets (EM).

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The next 12 months may turn out to be a wild ride for emerging market (EM) equities. The macro headwinds look threatening, with rising US interest rates and a strong US dollar.  The global wave of populism and its potential impact on trade flows could bring about a lasting breakout in volatility.

Looking on the brighter side, however, GDP growth in the developing world is starting to accelerate, while developed market (DM) growth will likely stay fairly muted. And we see signs that EM earnings power has stabilized and the underlying micro fundamentals appear quite robust.

Latest Thinking

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China Added to Benchmark

Game-Changer As Emerging Markets Investors Can Now Access A-Shares Directly.

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A deeper dive into how globalization and its populist discontents continue to drive uncertainty for markets.

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Indian Summer Reform Tackles Growth Constraints

As the fastest growing economy in the world’s fastest growing region, India has made great strides over the past three years.

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Weak Governance Ends Brazil’s Carnival Atmosphere

The extreme market volatility experienced in Brazil recently is a timely reminder of the significant idiosyncratic risks present in emerging market debt (EMD).

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Argentina: Phoenix From the Ashes or Cuckoo in the Nest?

After years in the wilderness because of bankruptcy and recession, Argentina is back on a path toward inclusion in the global investment universe.

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