Reasons to be (cautiously) optimistic on emerging market equities

We are cautiously optimistic about emerging market (EM) equities this year. Valuations are reasonable and risks look to be largely contained.

For the first time in almost a decade, we have reasonably strong growth across both developed and emerging markets, and for the first time since the 2010-15 downturn, most emerging economies are in the early stages of economic recovery with rising corporate profitability. Gallery: Six reasons the emerging markets rally will continue in 2018 This supportive macro story is being countered by the rising threat of protectionism. We see a high probability of low impact actions and a low probability of high impact measures. This is because we expect that President Donald Trump will get s...