Sun, Nov 29, 2015
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. Other Voices: Hedge fund marketing and the selling cycle[more]

    By Bruce Frumerman. How long is the selling cycle now? That’s a question my financial communications and sales marketing consulting firm has been asked on a regular basis by hedge fund firm owners and sales people, ever since we opened the doors to our firm in 1987 pre-crash. Wa

  2. People - Solus Alternative Asset Management adds chief strategist from BTIG[more]

    From Daniel Greenhaus joined hedge fund manager Solus Alternative Asset Management as managing director and chief strategist. He will work closely with Chris Bondy, Solus’ chief economist, managing director and executive vice president, said Chris Pucillo, CEO and chief investmen

  3. Opalesque Roundtable: Seeding deal terms can be onerous for hedge funds[more]

    Benedicte Gravrand, Opalesque Geneva for New Managers: Executives from fund of funds firms, family offices, a placement agent, a private equity firm, and an accounting firm gathered in Connecticut last month for the

  4. Opalesque Roundtable: Family offices flock to co-investment[more]

    Bailey McCann, Opalesque New York: Co-investments have been a hot topic for pension funds in recent years, as they try to move away from high fees and improve transparency. But now, family offices are more readily getting into the mix and establishing in-house deal teams, according to the delega

  5. More institutional investors invest in CTAs compared to last year despite dissatisfaction with performance[more]

    Benedicte Gravrand, Opalesque Geneva: "Despite a strong start to 2015 for CTAs in Q1, commodity market conditions have made return generation difficult for fund managers over much of the rest of the year to date," says Preqin’s November