Add a local twist to your EM portfolio
After a largely lacklustre 2018, sentiment towards emerging market equities has improved. And, with central banks in retreat across the globe, the dollar weakening and the trade ceasefire holding, they should remain in the spotlight for a while longer yet.
Don’t, however, wait too long before stepping in. Trade will remain a talking point, despite the current détente, and tighter liquidity conditions could weigh on returns in the longer term. It could be time to add a twist to your overall portfolio by upweighting some single country allocations. China
have a lot to offer, as does Indonesia, but tech sector travails leave us wary of other parts of Asia. In Latin America
, the Brazilian bulls may have run out of steam while Mexico’s prospects under a new, staunchly leftist leader are unclear.