Outlook Brightening for Emerging Markets
The outlook has brightened for stocks in emerging markets. A key reason is the trade agreement the United States reached with China last week, even if it’s only phase one. We acknowledge tensions could escalate again as negotiations move to the next phase, but this is still a clear positive any way you slice it. The de-escalation in trade tensions can help support the economic growth outlooks for emerging-market countries, particularly China and its key Asia trading partners.
Another reason we believe the outlook is looking better is the recent under-the-radar increase in emerging-market earnings estimates. As shown in toda... Read more