Five Keys to Emerging Market Outlook
We continue to prefer emerging market (EM) equities in tactical asset allocations. EM equities have given back strong early-year gains, pushing the MSCI EM Index into negative territory year to date on a total return basis. Many headwinds have weighed on EM stocks, including rising interest rates, U.S. dollar strength (and related weakness in EM currencies), and trade war fears. Here we highlight five keys to our EM outlook.
Five Keys to EM Outlook
1. Interest rates and monetary policy. EM’s latest bout of underperformance began on April 1, when the latest move higher in the 10-year Treasury began [Figure 1]. Since April... Read more