, Columnist
Trade-War Refugees Could Find Haven in Emerging Markets
They are poised to hold up better than the U.S. during the next downturn.
Developing economies have been a letdown recently, but their outlook is brighter.
Photographer: Joel Saget/AFP/Getty Images
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Investors alarmed by the intensifying trade dispute between the U.S. and China are fleeing emerging markets, but what they see as risk may turn out to be a haven.
It’s no accident that developing countries are feeling the fallout from concerns about China. Many investors venture into emerging markets through mutual funds and exchange-traded funds, and China features prominently in them. It accounts for a third of the MSCI Emerging Markets Index, by far the largest country allocation.