Emerging markets: Headwinds and tailwinds across the asset classes

The fallout of the Covid-19 pandemic and the attendant shut downs instituted across much of the world have been dramatic in terms of the precipitous falls in economic activity recorded across the world. While emerging markets (EM) are composed of a very wide swathe of countries with very different underlying fundamentals, the overall impact on the asset class has clearly been significant.     Consequently, our expectation is for growth to be negative across most economies and for fiscal deficits to climb meaningfully - in some cases into the double digits. From an investment perspective,...