Goldilocks and the running bulls: the good news for emerging markets
Bulls will retain the upper hand in emerging markets in 2018, but some assets could be in for a reality check. Bonds and equities in developing countries will continue to streak ahead, outpacing their developed-nation peers into next year, according to a Bloomberg survey of 20 investors, traders and strategists. Currencies, however, may struggle to stay in front. The survey was conducted over the period December 5-14. And while the Federal Reserve’s actions will remain key in determining the fate of what has been the strongest equity rally for emerging-market stocks in eight years, geopolitical risks will be less of a focus as investors zero in on US President Donald Trump and the outlook for the world’s second-largest economy: China. "The environment for emerging markets was great in 2017 with the Goldilocks factors of economic growth and low inflation in industrialised countries," said Hideo Shimomura, chief fund manager in Tokyo at Mitsubishi UFJ Kokusai Asset Management, which o...
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