Claire Peck Benedicte Gravrand, Opalesque Geneva:
Investors pulled $32.5bn out of stocks and bonds of 30 emerging markets (EM) in June 2013, in anticipation that US interest rates would climb, according to WSJ.com, but they reversed course later by pumping $221.7bn into emerging assets over the past 11 months, on bets that interest rates would remain near zero in the West well into next year.
EM equity markets are on the road to recovery after a recent slump: the MSCI EM index is up 9.8% YTD, up 17.8% in the last 12 months - and only up 2.5% in the last three years.
According to J.P. Morgan, investors should remain bullish on emerging markets.
In a recent Opalesque Radio interview with Sona Blessing, J.P.Morgan Asset Management's London-based Claire Peck, client portfolio manager, global emerging markets and Zsolt Papp, senior client portfolio manager within the global fixed income, currency and commodities group, give their global macro forecast for emerging market fixed income, currencies and equities.
Shinier front in fixed income
The general view since the beginning of this year on EM, particularly EM fix......................
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