Stocks Versus Bonds Dilemma Hits EM Traders as Trump Returns
- Goldman Sachs predicts 12% return in EM equities next year
- Bond spreads are below historic averages after 8.4% returns
A factory in Saltillo, Coahuila, Mexico.
Photographer: Mauricio Palos/BloombergThis article is for subscribers only.
Investors are scrambling to decide if Donald Trump’s impending return to the White House will sustain or derail the rally in emerging-market bonds witnessed under Joe Biden.
According to Jeff Grills, head of US cross-asset and emerging-markets debt at Aegon Asset Management, whether equities or bonds benefit most from Trump’s second presidency could partly depend on how aggressive he proves to be in slapping tariffs on key economies.