Stung by Yuan Miss, Banks Guarded on 2016 Emerging-Market Calls
- Fed liftoff and China's pace of growth complicate predictions
- Mexico, India, Taiwan are most popular overweight positions
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Reeling from a shock yuan devaluation few saw coming, emerging-market strategists at the top banks are wary of making definitive calls on what 2016 might bring.
Strategists from JPMorgan Chase & Co. to Morgan Stanley say there are no guarantees of a recovery as the protracted suffering of developing-market assets is not over. Reluctant optimists at Bank of America Corp. and Credit Suisse Group AG see the potential for emerging markets to outperform global equities in the second half of the year.