Rand is in investors’ emerging-market bargain bin
Investors are searching for cheap currencies, stocks and bonds after an emerging-market rout sparked by concern about a strengthening dollar and rising US yields
Lagos — The rand seems to be in plenty of investors’ bargain bins these days. So are the Colombian peso, Indian bonds and Chinese stocks as a slew of banks from Goldman Sachs to Morgan Stanley and Société Générale advocate a return to emerging markets. Investors are searching for cheap currencies, stocks and bonds following an emerging-market rout sparked by concern over a strengthening dollar and rising US yields. But the days when money managers could rely on high growth and low inflation to fuel broad returns across most emerging-market assets were long gone, said SocGen. "The world has moved on very quickly from a ‘Goldilocks scenario’ in which investors were able to pick up yield in a variety of asset classes, to an environment in which significantly more discernment is necessary," SocGen strategists including Alain Bokobza said in a note on Wednesday. Here is where some analysts and investors are looking for value:
The rand The currency has weakened 9.5% against the doll...
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