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Emerging markets are more risky after Trump's victory

There are few places to hide, with defensive trades already expensive and vulnerable to outflows

For EM, the biggest risk is in a sharp contraction in the US trade deficit on the back of increased tariffs. This would have the effect of driving up the value of the US dollar - historically a negative for EM.

PART of the uncertainty has been lifted, the event has happened. The outcome, however, isn't necessarily one which is friendly towards emerging markets (EM).

A rise in protectionism via higher tariffs for foreign-made products would impact trade flows globally, which would hurt profits,

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