Emerging Markets Spotlight
Despite the strong dollar and contracting liquidity, emerging markets are holding their own. As long as you’re selective.
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James Syme
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Paul Wimborne
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Ada Chan
One of the main drivers of global financial markets in 2022 has been the strength of the US dollar (and the weakness of other global currencies), driven by tightening US financial conditions. The dollar is the preferred currency for international trade invoices and cross-border financial claims. The global financial cycle is essentially a dollar cycle, and an aggressively tightening Federal Reserve has a chilling effect on non-US economies and non-US financial markets.
Disclaimer
The views expressed are those of the portfolio managers as of October 2022 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.
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