Emerging markets (EM) started 2019 on a strong footing and, as a result, some excessive valuation gaps have been partially closed. Yet, we continue to see opportunities in all EM segments (equity, bonds in hard currency and in local currency) with a medium to long-term view.
In the short term, we anticipate phases of volatility as geopolitical uncertainty remains high (especially on trade negotiations) and China is engineering a soft landing of its economy. Against this backdrop, we believe investors could seek entry points in periods of volatility to further add into EM assets.
Understanding how emerging economies are evolving and how to play them in the current environment is a key objective for our clients. Therefore, we have committed to build this publication, with the goal to outline our current vision of the emerging world and the key convictions, through key charts that can help explain the investment narrative.