EMs likely to shine with dollar index peak in sight

Emerging markets (EMs), which posted their worst annual performance in 2022 since the global financial crisis, may show a trend reversal in 2023 as historically they have shown a tendency to recover first in a recessionary environment. They are therefore often touted as an early-cycle asset class.

In each of the four US market recessions since 1990, EMs were the first to recover demonstrating a significant jump from trough to peak. For instance, EM equities gained 33% in the three months after global equities hit a bottom in the last week of March 2020.

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.

Click to view all articles for the EPIC:
Or click to view the full company profile:
Share on facebook
Share on twitter
Share on linkedin
Fidelity International

More articles like this

Fidelity Emerging Markets

Signs of life for Emerging Markets

Entering 2023, there were expectations that this could finally be the year that emerging markets equities give investors something to cheer about following a lengthy run of laggard status. While the year is still in its early innings,

Fidelity Emerging Markets

Emerging markets: China stocks lead gains on recovery hopes

Emerging market stocks rose on Monday, with mainland China stocks leading gains on hopes of economic recovery as the country eases strict COVID-19 restrictions and reopens borders, while most currencies fell against the dollar. Currencies of the developing world edged

Fidelity International

Casting our net wide

Casting our net wide An uncertain backdrop has led to market volatility and a dramatic derating in the emerging markets complex. Fidelity Emerging Markets Limited (LON:FEML) Fund portfolio manager Nick Price however highlights that all emerging markets are

Fidelity Emerging Markets

Emerging market stocks jump 20% from October low

Emerging market equities have rallied more than a fifth from their October trough as easing global inflation and hopes the US central bank will soon slow its interest rate rises prompt investors to shift in to the asset

Fidelity International

Emerging markets poised for strong growth ahead

The outlook for emerging markets is bright, particularly for longer-term investors able to capitalize on the current discounted valuations. Investors with an intermediate- to longer-term perspective will benefit from allocating to a China-focused, Asia, or broad emerging markets ETF

Fidelity International

Stocks index recovers on Hong Kong shares rally

A rally in Hong Kong stocks lifted a broader index of emerging market shares from one-week lows on Thursday, while losses in most other bourses amid recession worries capped gains. MSCI’s index of emerging market stocks rose 1.0%

Fidelity International

November brings best gains in years to emerging markets

November has given a glimpse of the outperformance that emerging markets can deliver in the post-stimulus world as the maturing phase of Federal Reserve tightening focuses investors’ minds on the opportunities beyond. Stocks, currencies and local bonds in

Fidelity International

Emerging Markets FinTech is a step ahead

Before the iPhone even had a copy-paste function, millions of Kenyans were banking on their phone. Mobile money, real-time payments, crypto, and even BNPL were all emerging market financial innovations before landing in the developed world. TEN13’s Alex Barrat looks into

Fidelity International

Is India the new darling of emerging markets?

The Indian stock market has proved an unlikely safe haven over the past three years. After an astonishing recovery in 2020 and 2021, Indian investment trusts continued their resilience in 2022, only outpaced by commodity-focused markets. Its strength

Fidelity International

Opportunity emerges in Emerging Markets

Upsides prevail in emerging markets as multiple headwinds show signs of abating. We believe the global valuation collapse has opened up tremendous opportunities in operationally strong companies. The VanEck Emerging Markets Fund (the “Fund”) returned -8.84% during the

Fidelity International

Have emerging markets become more investible?

Over the past twenty years, emerging market countries have addressed many of the vulnerabilities that have deterred foreign investors. Pramol Dhawan, Head of Emerging Markets Portfolio Management at PIMCO, explains that many countries have built up their US

Fidelity International

Firmer commodities boost Latam FX

The Chilean peso rose nearly 3% on Wednesday, leading sharp gains among Latin American currencies, as commodity prices firmed with the dollar pulling back from a two-decade peak. The dollar index =USD fell from a fresh 20-year high touched earlier on

No more posts to show