After a number of headwinds in 2018 including a stronger US dollar, higher US funding rates and growing US/China trade tensions, we believe there are now large opportunities across emerging market sectors.
14 Dec 2018
Given the strong domestic economic backdrop in emerging markets countries, equity markets were well placed to withstand the rise in US bond yields until early 2018.
However the strength of the US economy, growing US/China trade tensions and the softening of growth prospects outside the US created a number of headwinds to emerging market equity performance.
We believe the real long-term impact of these headwinds remain fairly limited in the context of longer-term structural themes. After the sell-off we believe large opportunities exist in a number of sectors.