Quotes from Capital Economics:
- Emerging market (EM) equities have kept pace with their developed market counterparts so far this year, bringing to a close their prior underperformance.
- While a rebound in the price of oil appears to have contributed to this development, given the problems caused for some countries by its preceding slump, we continue to think that the prospects for EM equities in aggregate are relatively bright, assuming, as we do, that the price of oil will now stabilise.
- Admittedly, there are bound to be concerns about the onset of Fed tightening. But we don't expect higher interest rates in the US to cause investors to flee equity markets in the emerging world. Indeed, the absolute performance of EM equities in the first twelve months of the past two major tightening cycles was very healthy.
