HALISTER1: Emerging-Market Edge Becomes ’Evident’ as Flows Return: Amundi

Emerging-Market Edge Becomes ’Evident’ as Flows Return: Amundi

(Bloomberg) -- “Valuations offer attractive entry points” into equity, debt and currency after years of underweight positions by international portfolios, analysts including Philippe Ithurbide say in e-mailed note.
  • Amundi cautions against investing in EMs as a bloc, as some countries like Brazil bear distinct and specific risks
  • In stocks, remains OW India, Thailand, Peru, Europe, Philippines
    • Stays UW Taiwan, Greece, Brazil, South Korea
  • Retains long positions in EM FX; favors USD debt in EM bonds
  • EM success will depend on Fed policy staying accommodative, fears about China growth, yuan proving “exaggerated,” commodity prices starting to recover and global growth not declining further
Alert: HALISTER1
Source: BFW (Bloomberg First Word)

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Philippe Ithurbide (Amundi Asset Management)

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