Redwheel
Emerging Markets faced three main headwinds in 2022: China's zero Covid-19 policy, aggressive monetary policy tightening globally and the Russian invasion of Ukraine. We see two out of those three factors turning into tailwinds in 2023. China has already started to reopen its economy and pivoted to a pro-growth, stimulus orientated stance and we see the Fed pausing hikes and potentially pivoting to rate cuts in Q4 2023 leading to a weaker US dollar. A dovish Fed, the reopening of China’s economy and the positive growth dynamics of Emerging Markets over Developed Markets are potential catalysts for Emerging Market equities to outperform. We believe it may be time for investors to reassess their exposure to Emerging Markets, making the most of historically attractive valuations, adding diversification to global equity allocations and tapping into the long term growth opportunities of the asset class.
View PDFFor so long investors and corporates have enjoyed the abnormal period of QE and zero interest rates. That time is behind us and a return to normality, cycles and inflation will break many things. This is a minder that growing wealth slowly, compounding a growing dividend is the more appropriate way to navigate the return to normal.
View PDF
