HSBC Gam’s Hervé Lievore, a senior macro and investment strategist, has recently told FE Adviser that poor emerging market performance in 2013 and early 2014 continued a recent trend which has seen emerging market equities lose 2.3% in dollar terms last year as developed equities gained 27.4%. – a near-30 percentage point gap has not been seen since the emerging market crisis of 1997-98. He also expressed concern about emerging market current account deficits:
“Since 2008, emerging market countries have seen a significant deterioration in their combined current account balance. As a group, excluding China, their combined current account has been in deficit since 2010, after 11 years of surpluses… We saw in 2013 that countries running current account deficits showed greater volatility, a logical consequence of the fact they are net capital importers. Conversely, countries like South Korea and Taiwan, which have a net financing capacity, were significantly more resilient.”
To read the whole article, Sell-offs ‘serve as a reminder of EM risk’, go to the website of FT Adviser. You might also want to check out: Stop Worrying About Emerging Market Current Account Deficits (FE Trustnet)
Similar Posts:
- Stop Worrying About Emerging Market Current Account Deficits (FE Trustnet)
- Emerging Market Opportunities Can Still Be Found (T. Rowe Price)
- HSBC Emerging Markets Index Falls From 51.7 to 51.2 But Manufacturing Was Up
- What the HSBC Earnings Report Tells Us About Emerging Markets (Forbes)
- How Asia Shapes Up 20 Years After 1997 Financial Crisis (Nikkei Asian Review)
- Emerging Market Investing: Remember Demographics and Take a Selective Approach (ThinkAdvisor)
- Investors Look to Emerging Markets as Planets Align For End of U.S. Dollar Bull Market (The Globe & Mail)
- Frontier Market ETFs Have 72% Exposure to Oil-Dependent Countries (FT Adviser)
- Are Frontier Markets a Viable Alternative to Underperforming Emerging Markets? (PA)
- HSBC Emerging Markets Index: EM Lose Pace in July Despite Manufacturing Pick-up (HSBC)
- Investors Are Overestimating the Extent of China’s Slowdown (FT Adviser)
- Psigma’s Gregory: Avoid Economies With Current Account Deficits (FE Trustnet)
- Frontier Markets Post-pandemic (Capital Group)
- Rplan Survey: Investors Have Been “Taken In” by Emerging Market Hype
- Southeast Asia Set to Gain From Trade War Business Relocations (Nikkei Asian Review)
