Hungary, Poland, Mexico and South Korea Poised to Handle a Pull Back in US Monetary Stimulus (WealthManagement.com)
WealthManagement.com has reported on the presentation given by Michael Hasenstab, bond fund manager at Franklin Templeton Investments, during a presentation at Morningstar’s Investment Conference in Chicago. During his presentation, he talked about how the Bank of Japan’s aggressive $1 billion annual stimulus program is creating a “wall of money” washing over the globe:
“The fear is that tapering will lead to mid-nineties-like collapse of emerging markets, we think that is wrong… The market has focused so much on the fed and fed tapering, it has ignored Japan’s aggressive stimulus.”
As for his $70 billion Templeton Global Bond Fund, Hasenstab has moved to the very short end of the yield curve and is looking for bonds in countries that can earn higher yields with little interest rate risk, saying that Hungary, Poland, Mexico and South Korea are among the countries poised to handle a pull back in US monetary stimulus.
Hasenstab’s fund is long in the dollar against currencies like the Euro and the Yen, but he thinks the dollar will decline against more “responsive” economies, like South Korea and Mexico. He also pointed out that the cushion of reserves available to emerging market governments is far higher than it was in the mid-nineties.
To read the whole article, Hasenstab’s Case For Emerging Markets, go to the website of WealthManagement.com.
- Analysts Favor Currencies Like the Mexican Peso, Won and Zloty (WSJ)
- Emerging Market Risk Ranking: Most Vulnerable to the Strongest (FT)
- Asia at a Crossroads: Demographics, Economics & Investment (State Street)
- Which Emerging Markets Have the Most Leveraged Stocks? (Bloomberg)
- Escalating Tensions Have Not Unsettled Korean Markets (Moody’s)
- S&W’s McGrath: Emerging Markets Are at the Perfect Entry Point (FE Trustnet)
- Will the Russia-China Gas Deal Give Japan Energy Security? (Reuters)
- Statistics on Swiss Franc Exposure in Central/Eastern Europe Lending (Reuters)
- Emerging Markets vs Japan: Which Offers the Most Value? (Citywire)
- Fortune Magazine’s Best Emerging Markets to Invest in Now