Bullish Trend in Emerging Markets Set to Resume: Ashmore
Alert: HALISTER1
Source: BFW (Bloomberg First Word)
To de-activate this alert, click here
To modify this alert, click here
UUID: 7947283
(Bloomberg) -- Longer-run bullish trends for EM remain intact despite the global backdrop of stronger growth and higher interest rates in the U.S., Ashmore strategist Jan Dehn wrote in a note.
- Valuations, technicals and fundamentals likely to keep EM strong over next 4-5 years, Dehn says
- “We believe that the ongoing pullback from generally EM-supportive trends will be short-lived and shallow,” Dehn says. “Investors should therefore add into temporary weakness”
- Real yields are still high in EM due to declining inflation across local markets, meaning central banks still have room to cut rates
- Yields were "too high" from foreign selling of EM local currency bond yields in past few years
- Room to ease monetary policy in Latin America and other commodity-focused economies in EM
- Exceptions include Turkey, Venezuela and Argentina, which have high inflation
- US productivity a concern, as is rising US government debt
Alert: HALISTER1
Source: BFW (Bloomberg First Word)
To de-activate this alert, click here
To modify this alert, click here
UUID: 7947283