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Outlook for emerging markets still positive but returns may be muted
Three key factors could potentially weigh on the performance of EM equities in 2018.
Add BT as a preferred sourcePublished Tue, Jan 9, 2018 · 09:50 PM
THE outlook for emerging market (EM) equities remains positive, albeit we expect returns to be more modest in 2018.
The MSCI Emerging Markets Equity index has returned 35 per cent (USD return) year-to-date, benefiting from attractive valuations and investors' relatively light positioning after strong outflows in 2013-2015.
The rally has been led by the uplift in global trade, underpinned by a synchronised recovery in global growth, and US dollar depreciation.
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