Geopolitical conflict and rising inflation are weighing heavily on US equities, but emerging markets such as Brazil and Chile have benefitted from the exclusion of Russia from key indexes.
The war in Ukraine has compounded inflation worries, as the narrative plays out, commodity prices and treasury yields are likely to continue rising and US-listed companies could decline in valuation, estimate equity analysts.
Julian Brigden, co-founder and president of Macro Intelligence 2 Partners, told Opto that US equities will struggle to see the kind of returns they delivered in 2020 and 2021. He indicated that there could be investment opportunities in emerging markets and particularly in Brazil, Chile, Mexico and South Africa. Brigden is less enthusiastic about prospects in China.
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.
