What themes do you anticipate will most influence emerging market equities in 2024?
The key themes for emerging markets in 2024 are the direction of the Fed – and that has implications for the strength of the dollar. The political calendar – we have a lot of elections, not only in emerging markets like India, but also in the United States; that has enormous implications for U.S. policies toward emerging markets, like China. China macro: Can the Chinese policymakers stabilize and deal with the excesses of the past economic model? And lastly, geopolitics. Clearly, 2023 was a story of more and more complexity on geopolitics. Hopefully, 2024 will be less noisy, but perhaps that’s some kind of consideration that we have to think about for 2024.
Where do you expect the most compelling opportunities emerging markets?
I think there are two key areas that I would look to for attractive investment opportunities. Number one is India at the right valuations; it is the one that can credibly grow, [with] high-single-digit GDP growth for two decades.
Fidelity Emerging Markets Limited (LON:FEML) is an investment trust that aims to achieve long-term capital growth from an actively managed portfolio made up primarily of securities and financial instruments providing exposure to emerging markets companies, both listed and unlisted.
