These Comfort Charts Signal Year-End Recovery for EM
- Stocks and currencies have rebounded since August’s nightmare
- JPMorgan, Wells Fargo see room for further gains this quarter
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After a rally from mid-August gave way to another sell-off through early September, emerging-market investors would be forgiven for being wary of new signs that calm is returning.
But with the dollar struggling to make headway and equity valuations in the developing economies near the lowest this year, the scene may be set for more gains. So say commentators from JPMorgan Asset Management to Wells Fargo Asset Management. There’s even optimism that the world’s biggest economies will reach a truce on trade tariffs after the breakthrough reached between the U.S., Canada and Mexico on Sunday, potentially removing one of the biggest risks to the sector.