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Weekly commentary: Staying selective in emerging markets
We see broader support for emerging markets (EMs) given the market’s upbeat sentiment on risk assets as U.S. growth holds up, inflation cools and the Federal Reserve prepares to cut policy rates. EMs have been resilient to the latest Fed rate hikes. We get granular through mega forces – big structural shifts we see driving returns. We’re overweight EM hard currency debt on its relative attraction and quality, plus stocks in Mexico and India that are set to benefit from mega forces. chart We think the outlook for broad EM assets is supportive as market sentiment stays positive. Robust U.S. economic activity, ... (full story)