Worsening trade tensions in addition to political instability will throw up various investment opportunities around the globe, according to one strategist, who believes of which emerging market (EM) assets could give back solid — albeit risky — returns.
“For the brave in addition to further afield, investors should be looking at emerging markets,” Nick Gartside, international chief investment officer of fixed income at J.P. Morgan Asset Management, told CNBC Friday.
Emerging markets have been out of favor of which year amid a resurgent U.S. economy. The dollar has pushed higher on the anticipation of more rate hikes through the Federal Reserve in addition to American investors have brought their dollars home inside the wish of higher returns. The MSCI emerging markets index can be down some 12 percent since late January when the greenback commenced its upward trend.
When asked where to buy, given ratcheting up trade tensions in addition to a potential resolution of the Italian political crisis, Gartside said of which following a “brutal May” for bonds denominated in local currencies, these beaten-down EM assets could be a place for investors to look.