Sun, Apr 23, 2017
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Alternative Market Briefing

Amundi: Emerging market crisis probably not over

Tuesday, February 18, 2014

Komfie Manalo, Opalesque Asia:

The emerging market crisis is probably not over, said Amundi Asset Management in its latest Cross Asset Investment Strategy research and added it was preferable to limit investment in these areas.

According to Amundi, investors should take steps to favour less vulnerable countries that have the ability to stimulate growth if necessary. They will gradually outperform the troubled group. Focusing on risks in each country instead of overall risk will once again begin to pay off, it added.

The research said, "Corporate profits in developed countries could be revised downwards due to the impact of exchange rates, particularly in Europe, which is a reason to be cautious with respect to risky assets in the short term. This revision of profits seems to largely be due to a one-off effect (transaction effect), and the fall in the markets since the beginning of the year has taken this partly into account. Over a year-end horizon, the eurozone equity market should still be able to hold its own."

Amundi explained the crisis reinforces some of its beliefs regarding focus, which is preference for domestic securities in developed countries. The decline in long-term rates (-41bp in the US, -32bp in the UK, and -29bp in Germany) is due to the crisis that took the market by surprise by its magnitude. Focusing on the long run is preferable in the current environment.

"It is important to note that t......................

To view our full article Click here

Today's Exclusives Today's Other Voices More Exclusives
Previous Opalesque Exclusives                                  
More Other Voices
Previous Other Voices                                               
Access Alternative Market Briefing

 



  • Top Forwarded
  • Top Tracked
  • Top Searched
  1. Opalesque Exclusive: Carden Capital bets on volatility[more]

    Bailey McCann, Opalesque New York for New Managers: Machine driven strategies are having a bit of a moment in the hedge fund world right now. Systematic funds have outperformed other strategies at a time when all ey

  2. Sprott AM to sell Canadian diversified fund business to management-led group[more]

    Komfie Manalo, Opalesque Asia: Toronto-based asset management company Sprott Asset Management LP (SAM) has entered into an agreement to sell its Canadian diversified fund business to a management-led group. Under the deal, the new group will have

  3. Investing - These hedge funds (and Madeleine Albright) are betting on a debt crisis, Hedge funds are upping their bets on the death of the traditional retailer, $20bn hedge fund recaps Corizon[more]

    These hedge funds (and Madeleine Albright) are betting on a debt crisis From Yahoo.com: There could be a big debt crisis brewing in places like China, India, Latin America and Africa -- and a growing number of investors are amassing war chests to cash in on the distress. Albright Capital

  4. Universities looking to defend endowments from Republican tax plan[more]

    From PIOnline.com: Some of the richest U.S. colleges are pushing back against scrutiny by Congress over the tax-exempt status of university endowments. Lobbying disclosure forms show almost two dozen schools such as Princeton University, University of Notre Dame and Cornell University are including

  5. Activist News - GAM touts 'tangible results' of turnaround as activist fight hots up, Bill Ackman not done with Herbalife, says his fight could get legs in May, Activist hedge fund CIAM says Euro Disney's buyout offer not fair for minority investors[more]

    GAM touts 'tangible results' of turnaround as activist fight hots up From FNLondon.com: GAM, the Swiss asset manager at the center of an attempted boardroom putsch by activist hedge fund RBR Capital, said its first-quarter results amounted to "tangible" proof that its management's plan f