What could end the bullish EM party early? The MUFG Global Markets Podcast

2021-02-12

Emerging markets (EM) may get worse before they get better given vaccine distribution will require patience, with inoculation lagging in developed markets. However, a confluence of forces – cyclicality, commodities, China and valuation – signals EM outperformance in 2021, according to Ehsan Khoman, Head of Emerging Markets Research (EMEA). What could end the party early? Investing in EM is never without risks, and Ehsan advocates that investors should not lower their guard completely and would be bes...

Emerging markets (EM) may get worse before they get better given vaccine distribution will require patience, with inoculation lagging in developed markets.

However, a confluence of forces – cyclicality, commodities, China and valuation – signals EM outperformance in 2021, according to Ehsan Khoman, Head of Emerging Markets Research (EMEA).

What could end the party early? Investing in EM is never without risks, and Ehsan advocates that investors should not lower their guard completely and would be best-positioned by adopting idiosyncratic bottom-up strategies instead of focusing on top-down macro.

In this week’s podcast, he examines four critical dynamics that could derail the EM recovery this year.

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