Why Emerging Markets Face a Brighter Outlook Post 2018
- JPMorgan Chase sees MSCI EM stocks gauge at 1,100 by end-2019
- Templeton says long-term buying opportunities in EM equities
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After starting the year on a high note, emerging-nation equities are poised for their fifth annual decline of the past decade. The good news is that market players see clouds lifting -- or at least clearing up some -- for 2019.
Next year could see a “triple trend reversal,” with China policy easing feeding through to faster growth in the world’s No. 2 economy, a Federal Reserve pause in mid-2019 weakening the dollar and a hiatus in the U.S.-China trade war, according to Morgan Stanley strategists led by Jonathan Garner. That scenario “benefits EM equities the most,” they wrote in double-upgrading the asset class to overweight relative to benchmarks from underweight.