Europe Can Set the Agenda
Wednesday, August 1st, 2018 Categories: Emerging Markets, Equities, FX rates, Government Bonds
EM assets are already attractive in euros
Because of the strong dollar, European investors have a chance to buy emerging market exposure without competition from US investors. EM Bonds already offer attractive risk- adjusted returns when measured in euros or pounds. There may also be an opportunity in selected equity markets like Mexico, India and Israel, even if the overall index is unattractive because of its large exposure to China and the threat of a trade war.