In his latest video, Steve Drew, Head of Emerging Market (EM) Credit, explains why the current macro backdrop for emerging markets should remain benign and where he sees the sweet spots for investments in his asset class. While he expects some kind of volatility spike before the year end, most likely from geopolitical developments, given the strong fundamental and technical picture in the asset class, he believes it will prove to be a buying opportunity.
- Both fundamentals and technicals are strong in emerging markets
- Rate hikes in the US probably limited to just one more for the near future
- The US dollar will likely remain stable to weak, benefiting EM currencies and hence EM debt
- Current sweet spots of investments look to be in BB emerging market credits
Past performance is not a guide to future performance. The value of an investment and the income from it can fall as well as rise and you may not get back the amount originally invested.
The information in this article does not qualify as an investment recommendation.
For promotional purposes.
Anything non-factual in nature is an opinion of the author(s), and opinions are meant as an illustration of broader themes, are not an indication of trading intent, and are subject to change at any time due to changes in market or economic conditions. It is not intended to indicate or imply that any illustration/example mentioned is now or was ever held in any portfolio. No forecasts can be guaranteed and there is no guarantee that the information supplied is complete or timely, nor are there any warranties with regard to the results obtained from its us.
Please read the following important information regarding funds related to this article.