Emerging markets: Hard work is still to come

India and trade disputes give EM managers a lot to think about

Investors in emerging markets have been closely following two hugely significant events recently, says Kim Catechis, head of global emerging markets at Legg Mason affiliate Martin Currie.

The first, India's election, was the world's largest ever exercise in democracy, involving approximately 900 million Indian citizens, between them speaking 22 official languages and including around 15 million young people (18 to 19-year olds), who are first-time voters. The second is the ongoing trade war dispute between the US and China, which looks set to continue for as long as Donald Trump is President. Following Narendra Modi and his BJP-led coalition's re-election, markets surged on the news that the business-friendly reformist would remain in power for another five years. Howev...