The second half of 2021 has seen challenging macro news for emerging market assets: a new and troubling Covid variant, higher developed market inflation and the prospect of tighter US monetary conditions, and evidence that the Chinese economic slowdown is broad and likely to endure. These challenges are likely to continue into 2022, and concerns are rising that, longer term, emerging markets face some serious structural challenges to growth: Chinese demand capped by the need to work through the effects of the 2008-17 credit boom, worsening global demographics, and a reversal of globalisation. That reversal is partly because Covid has shown the risks inherent in long supply chains, and partly because of rising economic nationalism; both have the potential to reduce the flow of FDI to Emerging Markets.
Disclaimer
The views expressed are those of the portfolio managers as of December 2021 are subject to change, and may differ from the views of other portfolio managers or the firm as a whole. These opinions are not intended to be a forecast of future events, a guarantee of future results, or investment advice.
We have seen continued high inflation prints across the world, with volatility in interest rate expectations testing the resolve of central banks...
What a China-Taiwan conflict could mean for stocks
Emerging Markets ("EM") Asia is at the center of the electric vehicle revolution.
For a better experience, we recommend viewing this website in landscape orientation.
