Frontier Markets: 2019 Outlook (FIS Group)
Frontier markets slumped in line with other non-dollar denominated markets in 2018; though outside of Argentina (which fell by -50%), frontier markets as a whole outperformed even the U.S.. Almost all of the positive contribution in 2018 came from dollar-pegged Kuwait, which surged early and late in 2018 to buck global trends and gain 15% on the year. Broadly, valuations remain in line with emerging markets, albeit at higher returns on equity. Broad prospects for the beta in frontier markets remain mixed, but with good stock-picking opportunities amid increasing neglect. For our macro calls, we are strategically bullish only in Vietnam, where macroeconomic stability and high growth continue unabated. In 2019 we are also looking for some tactical outperformance from Nigeria. In Argentina, we will stay neutral until after the elections in October. Our underweights are all in MENA, where valuations and growth remain generally uncompelling despite our relatively constructive view on oil prices for 2019. READ MORE
Similar Posts:
- Nigeria, Argentina and Vietnam Top the Frontier Markets Sentiment Index (WSJ)
- Russell Frontier Markets Equity Fund’s Manager Sees Neglected Gems (WSJ)
- Vietnam: In a Sweet Spot (AFC Asia Frontier Fund)
- Frontier Market ETFs Have 72% Exposure to Oil-Dependent Countries (FT Adviser)
- Mark Mobius’s Favorite Emerging Markets: Indonesia, Russia, Brazil, Vietnam and South Africa (WSJ)
- Webinar – Asian Frontier Markets Update on Friday, 28th October 2022
- Asian Frontier Markets See a Strong Rebound in August – Asia Frontier Capital (AFC) – August 2022 Update
- Results of MSCI 2017 Market Classification Review (MSCI)
- 2017 Global Retail Development Index (ATKearney)
- Prudent Ways to Invest in Frontier Markets (WSJ)
- The “Next Eleven” and the World Economy (The Asset)
- How MSCI’s Removal of Qatar & UAE Impacts the Frontier Markets Landscape (MM)
- AFC Asia Frontier Fund – Review 2022 and Outlook 2023 (AFC Asia Frontier Fund)
- May 2022 Update: Invest Through the Cycle to Generate Long Term Returns (Asia Frontier Capital)
- Frontier Markets Post-pandemic (Capital Group)
Leave a Reply