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U.S. Disarray Has Emerging Markets Struggling to Hold the Line

  • Weakness offers chance to reposition for recovery: PineBridge
  • Turkey’s inflation and Argentina’s peso devaluation in focus
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Emerging Markets are Attractive, Says Gradient Investments Portfolio Manager
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Whatever turbulence risk assets may suffer in coming days as a result of President Donald Trump’s sickness, emerging markets can celebrate a few plus points.

Staring down almost $16 trillion of negative-yielding debt worldwide, investors will continue to be drawn to the higher returns offered by emerging-market assets and the prospect of an economic recovery next year, analysts say. Developing-nation currencies are also benefiting from broad dollar weakness, with the U.S. currency still below its 200-day moving average. Trump’s diagnosis has also made it more likely Congress and the White House will reach a deal on pandemic relief before the November election.