Thinking Strategically About Emerging Markets (UBS)

This year, like many others in the past decade, has not been a good one for emerging market assets. Across developing countries, the performance of bonds, stocks, and currencies has been poor in absolute levels and in general below that of their more developed counterparts. The headwinds they have faced this year include escalating trade tensions between the US and its major trading partners, rising US interest rates, and local and global political uncertainty as the anti-establishment, anti-globalization movements have colored electoral races worldwide. The underperformance has been particularly severe in Argentina and Turkey, where largely idiosyncratic vulnerabilities have been compounded by global shocks. 

This paper invites the reader to look past the events of the moment and view emerging markets from a broader perspective. As we highlight in our three key messages below, we believe that through a steadfast, eventempered approach, one can reap the benefits of the growing investment opportunities offered by the world’s most dynamic set of regions. READ MORE

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