Rocked by trade disputes, the possibility of a U.S. recession and the ever-present threat of political conflagration, the backdrop for emerging and frontier markets has rarely seemed less settled. Dare to look past the turmoil, though, and opportunities abound.
Higher bond yields are attractive at a time when the world’s richest nations house about $13 trillion in negative-yielding debt. At the same time, superior economic growth provides a hedge against a global slowdown sparked by the U.S.-China trade war, and equities offer a bargain relative to the overvalued stocks of advanced markets.
