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Bearish Bets Lurk Beneath Emerging-Market Veneer of Confidence

  • Societe Generale, HSBC hedge bullish majority’s hope
  • Risks include vaccine distribution, rising burdens of debt

While Wall Street is almost universally united in calling for a bull year across emerging markets, strategists from HSBC Holdings Plc to Societe Generale SA are warning investors to curb their enthusiasm.

With stock valuations already stretched to their limits, potential stumbling blocks include the difficulty of vaccine distribution systems, an uneven recovery and precarious debt burdens. Questions are also being raised about whether less wealthy nations stand at the end of the line to receive vaccines.