Emerging market asset classes rallied sharply in the first quarter.
Entries by Leah G. Traub, Ph.D.
China first devalues—then supports—its currency. What exactly is going on?
The European Central Bank’s continuing commitment to quantitative easing eventually will boost the economies of emerging markets and support their currencies.
Market contagion, however, should be limited.
Sure, sharp drops in commodities prices have hurt major producing countries that have not been able to diversify their economies away from commodities, but heavy importers should benefit.
While emerging markets have continued to outpace developed markets, the differences in economic policies have been dramatic.
While the ruble has been battered for months by risk aversion toward Russian assets caused by the conflict in Ukraine, yields on some government bonds remain attractive.
Investors are looking for much needed reforms after Brazil’s elections on Sunday.
Markets can expect volatility to return at some point. The question is when—and what will be the catalyst?