The outlook for emerging markets is brighter than it is for developed markets when it comes to growth, inflation and public debt, Jean-Charles (JC) Sambor, Head of Emerging Market Debt, tells Daniel Morris, Chief Market Strategist, on our latest Talking Heads podcast.
While China may look like the exception now, increasingly firm support from Beijing should trigger a rebound in the next few quarters from the problems of deflation and property market weakness plaguing the economy today. Compared to China, India is likely to see much stronger growth and contained inflation, while improved policies should allow Turkey to do better than it did last year.
On hard currency debt, spreads over US Treasuries are likely to narrow, leaving EM high-yield bonds in particular with scope for outsized returns.
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.
