We have recently seen much more investor interest in emerging markets (EM), across currencies, fixed income and equities.
The recovery in EM equities started at the end of last year, and over the past three months they beat developed market equities by nearly 7%.1
Many commentators tried to call the rebound in 2018, but EM companies’ earnings growth could not keep pace with US companies, which were fuelled by tax cuts. In the end, the catalyst proved to a weaker US dollar combined with hopes of resolution to the escalation of trade tariffs between the US and China, which have hit EM trade.
Will the relative recovery continue? Find out more in this week’s Strategy Espresso!
