South Africa Is a Top Pick for Choosy Emerging-Market Investors
- Stocks, rand, bonds are among best performers in 2022
- Assets seen vulnerable to inflation and global rate hikes
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Investor appetite for emerging markets has waned this year, but they still have a taste for South Africa.
Rising U.S. Treasury yields, inflation and the approaching lift-off for Federal Reserve rate hikes have provided reason enough to be cautious about riskier assets. However, South Africa’s contained price pressures, compelling valuations and the boost to commodity prices from Chinese economic stimulus are among factors making it a favored bet.