Summing up the outlook for 2020, Schroders’ CIO thinks that superficially, overall market valuations look uninteresting. But dig a little deeper and there may be reasons for active investors to be enthusiastic about 2020.
The balance of risk and reward remains attractive in several high yielding EM local debt markets, while EM currencies are well positioned for a strong recovery in 2020.
The 2020 outlook for emerging market debt (EMD) remains positive, with fundamentals broadly supportive. Should the US dollar depreciate, the upside for local EMD looks particularly attractive.
China’s bond markets are huge, but many foreign investors have little exposure. They are now opening up. Manu George explains the potential long-term opportunity for investors.