The 'exploitable anomalies' revealed by political uncertainty

The ‘exploitable anomalies’ revealed by political uncertainty

The impact of politics on emerging market sentiment has created a number of opportunities in the sector, but there are also many countries investors should avoid, says Nick Price, manager of the Fidelity Emerging Markets fund.

Political events, both positive and negative, have had a heavy influence on emerging markets this year. Events in Ukraine have been a source of disquiet, though some of the heat has gone out of this issue recently, and there are indicators that economic pressures may move the European Union towards a more conciliatory stance on Russian sanctions. More positively, reforming governments have come to power in India and Indonesia. President Dilma Rousseff's re-election in Brazil is, however, potentially a negative for market sentiment, unless she seeks to redress some of the imbalances he...