Emerging Markets investors have experienced significant market volatility in the first and second quarter of this year. Covid-19 has shown that country-level factors are more important than ever in this space.
While some countries struggle to deal with the economic effects of Covid-19, others have set the global benchmark for dealing with the virus. Fiscal positions and current account balances vary across the EM universe – and will be critical in each country’s ability to respond. Meanwhile potential weakness in the US dollar may have important implications for the EM asset class. There are opportunities to be had – and definitely areas to avoid.
In this online adviser briefing, senior fund manager James Syme explains the factors that he and his team look for when investing in emerging marketing in this current economic climate.