Trade secret: Emerging markets constrained by US policy uncertainty

Except for trade concerns, emerging market economies are generally on a positive trajectory

Cao_Steve_sm_150dpi_RGBUncertainty about US trade policy changes that could potentially harm emerging market economies dragged them down 4% during the fourth quarter of 2016, underperforming developed markets by 2%.1 Yet emerging market economies generally showed positive signs, with exports beginning to recover, commodity prices rebounding, and inflation remaining benign.

Country snapshots

Here’s a quick look at how individual countries fared:

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Emerging market bonds: Investing with conviction in volatile markets

When market prices and fundamentals are misaligned, opportunities may become available

Jason Trujillo

As a young Army paratrooper, much of my training was focused on learning to operate under chaotic circumstances. The battlefield is nothing if not chaotic, especially in the pitch black of night, which is how we often trained.  Initially, I found this to be highly stressful, as I had only a vague sense of what was going on and what I was supposed to be doing. Fortunately, the 82nd Airborne Division had many “understanding” leaders who were extremely eager to provide some “gentle guidance” to help square away a new soldier. After a bit of this “gentle guidance,” I became increasingly comfortable operating within the chaos – gaining a clearer sense of the battlefield, what my job was, how that job fit into the unit’s broader mission and, very importantly, how to use my equipment (trust me, moving around with night vision goggles is a lot harder than it seems in the movies). With time, I began to view the chaos that is endemic to the battlefield not as a source of stress, but rather

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Emerging market shares gain ground on economic firming and an improved earnings environment

Despite improved performance, valuations are cheap relative to the developed world

Cao_Steve_sm_150dpi_RGBEmerging markets delivered strong performance in the second quarter, driven by improved economic conditions and stabilized corporate earnings.1 The macro-level strengthening included lower inflation, stable commodity prices, improved current account balances and a reversal in currency depreciation. Assuming an accommodative monetary backdrop, emerging market gross domestic product (GDP) is expected to grow by roughly 4% this year and to accelerate in 2017 — the first acceleration in four years.2

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