Emerging Markets: Opportunities in a Crowded Trade
The global economic slowdown and the US-China trade dispute cast a shadow over the growth prospects for emerging-market economies. Despite fundamentals that historically have boosted emerging-market growth, the strong dollar, pause in Federal Reserve policy tightening, and Chinese slowdown are palpable risks that emerging-market investors must navigate in the short-to-intermediate term. This session will examine the efficacy of one of the most crowded trades: shifting incremental investments away from US opportunities and toward those in emerging market. What specific risks and vulnerabilities are likely in the face of a prolonged Fed pause, continued ECB easing, stronger dollar, and the deepening China slowdown? What regional or country-specific influences and opportunities among emerging markets would offset such risks? Which emerging-market economies and asset classes offer the best risk-reward tradeoff now?