Emerging Market (EM) Assets Remain Under Pressure

    JN Fund Managers
    JN Fund Managers

    Emerging Market (EM) assets remain under pressure whilst the US stock market continues its record long bull run. The MSCI Emerging Market Equity Index has fallen by 11.80% year-to-date (YTD) whilst the S&P 500 has risen YTD by 7.79%. EM assets continue to be weighed by the overall selloffs in Argentina, Turkey and Brazil over concerns there may be a contagion effect of the crises in these economies on the overall Emerging Market economies. We also believe US-China trade tensions and a rise in U.S. short-term interest rates remain key dynamics impacting markets in the short-term. Although we anticipate uncertainty in the short-term to remain, we still believe there may be buying opportunities present for select Emerging Market assets as the underlying fundamentals for some EM assets are still solid; driven by economic growth and rising commodity prices. Potential risks to this outlook include a persistently stronger US dollar which would further drive a capital outflow from EM assets.

    JN Fund Managers

    Stocks, Bonds and venture Capital.

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