Strong Rebound for Emerging Markets

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By Patricia Ribeiro - April 25, 2019

The suddenly dovish stance from the U.S. Federal Reserve has been good news for emerging markets—both in terms of equities and currency values—as we head into the second quarter and the rest of 2019.

As a result, we saw more money flowing into emerging markets in Q1. I think there are two reasons for that: first, valuations have once again become attractive and investors are focused on the fundamentals. And second, the Fed's decision to keep rates steady calmed worries that emerging markets would pay dearly in a rising rate environment.

But not everything in the emerging markets picture is perfect. There's still no truce in the U.S.-China trade war, which has a trickle-down effect through other markets, both emerging and developed. Admittedly, there's a lot of optimism that we'll see a signed agreement between the two countries soon, but I didn't think it would take this long. So, we'll all stay tuned with our fingers crossed.

Please click on my latest quarterly video to hear more of my thoughts on these topics, as well as which country I'm particularly bullish on. (It might surprise you.)

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