Higher interest rates, a stronger dollar and Donald Trump: three reasons to avoid emerging-market (EM) debt? Not necessarily. Rising rates seem to be signaling faster growth, and that’s good news for many EM bonds and currencies.
With Donald Trump about to be sworn in as US president, markets in Asia are nervous about some of his policies, especially on trade. Investors who are alert to these policies’ likely limitations could find attractive opportunities.
Rising volatility and yields. Toppy valuations. Global policy uncertainty. To handle these bumps in the road, investors need to build a better return path focused on strong up/down capture. Further, we see seven key themes affecting that path ahead.
Among the highlights in our global cyclical outlook: We expect economic growth to remain moderate this year, but slightly better than 2016, and fiscal stimulus should move into the spotlight.
Instead of sitting on the sidelines in 2017, take a look at Europe’s corporate bond markets. They could prove a beacon of stability in an uncertain world.
Could Indonesia be the next China in the world of e-commerce? In conversations with consumers across the country, we discovered an online revolution in the making that has huge growth potential for investors.
The nascent recovery in emerging markets has been thrown into question by Trump’s election. While the concerns warrant attention, we still see compelling reasons to invest in developing economies.
The ECB’s decision in early December to reduce the monthly pace of its asset purchase program came as a surprise. But investors should draw considerable comfort from its commitment to maintain a “sustained presence” in euro-area markets.
Capital spending, which slowed sharply this year, may be poised for a rebound in 2017. That could be good news for certain cyclical sectors—provided governments make good on their plans to boost fiscal stimulus.
It’s been a wild month for US banking stocks, which have rallied sharply since Donald Trump’s victory. So how can investors position themselves in the sector amid a potentially dramatic change in the business and regulatory environment?