The emerging markets sell-off: is the worst over?

Emerging market assets struggled in H1 2018 but how has the outlook changed and what should investors do?

10 juil. 2018
  • Emerging market assets have experienced a broad-based sell-off across regions and asset classes, similar in severity to the Taper Tantrum in 2013.
  • In contrast to the first half of the decade, we do not see this as the start of a prolonged period of EM underperformance.
  • Improved fundamentals, a more growth-supportive China and more attractive valuations suggest to us that for investors with a longer-term investment horizon, Emerging Market assets offer good diversification and return potential..
  • Still, heightened trade tensions and a Fed set on tightening further present meaningful risks, suggesting that emerging markets are likely to remain volatile in the near-term.