Developed markets are a better bet

ON ASSET ALLOCATION

T. Bailey's Elliot Farley says inflation is threatening the growth outlooks for emerging markets.

We have spent much of the past 10 years extolling the virtues of the longer-term outlook for emerging markets but have more recently found ourselves in the position of arguing, for the shorter term, better value lies in some of the developed markets. The growth outlook for EMs now looks less rosy in the light of burgeoning inflation threats and we do not see this as being conducive to the region performing relatively so well in the shorter term. In comparison, some developed markets such as the US offer more attractive value and, in their case the dollar, has scope to rise this year t...