Three Big Banks Say It's Time to Hedge Against Emerging-Market Risk
- ‘We strongly advise looking for well-priced hedges,’ BofA
- SocGen says some recession hedge ideas can prove useful
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The time has come for investors to consider protecting against emerging-market losses, according to three of the world’s biggest banks.
After a strong start to the year, Societe Generale SA, Bank of America Corp. and Wells Fargo & Co. are questioning how much value is left in developing nations -- flagging the potential pitfalls to the Goldilocks story that’s gained so many adherents. While riskier assets benefit from the more dovish turn by the Federal Reserve, global growth is still a major source of concern as prospects for an extension of a U.S.-China trade truce fizzle. On top of all that, the widespread consensus for emerging markets is still bullish.