Forget the schnapps this season and grab a caipirinha. The new year will usher in a rebound in beaten-up emerging markets, with Brazil leading the charge, a Bloomberg survey shows. Equities, currencies and bonds of developing economies have found a floor and will likely outperform their developed-nation counterparts in 2019, the survey of 30 investors, traders and strategists by Bloomberg showed. Brazil was the top pick for all three asset classes, with Indonesia another standout. Turkey, with its economy on course for recession, came bottom of the table on two counts. Key to the anticipated 2019 turnaround is a less aggressive Federal Reserve, which dialled back projections for interest rates and economic growth as it hiked borrowing costs on Wednesday. That offers relief to developing nations that ramped up their dollar borrowing in recent years. A bottoming-out in China’s slowdown and reduced tensions on the trade-war front would also help emerging markets after their worst perfo...

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