Economics
UBS Strategist Who Forecast Rout Sees Emerging Rally Fizzle
- Bhanu Baweja sees no ``inflection point'' after market rebound
- Weak global trade, high debt levels will weigh on equities
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The rally that has almost erased this year’s decline in emerging-market assets probably won’t last as economic growth remains sluggish, according to Bhanu Baweja, a strategist at UBS AG who correctly predicted the selloff in 2015.
“Leading indicators don’t point to a major inflection point,” Baweja, the head of emerging-market cross-asset strategy at UBS in London, wrote in an e-mailed research note Tuesday. While the pace at which developing-nation economies are weakening has moderated, it’s “more likely than not that we trudge along the bottom for a while rather than see a significant pick-up in growth,” he said.