US Deal and Possible Delayed Tapering Could Boost Emerging Markets

With the removal of a major market overhang following a deal to avoid a U.S. debt default, investors have begun to wonder: are emerging markets set to soar?
“We expect the news to sustain the re-pricing of risk assets that got underway in September,” Tim Condon, head of research for Asia at ING, said. “We now think emerging market equity will outperform developed market equity in the current quarter.”

“The 12 percent loss during the May 21-August 30 market turmoil leaves more to claw back compared with developed market equity, which lost 3 percent,” he added, referring to the performance of the MSCI Emerging Markets Index and MSCI World Index. Condon noted that his top picks include Indonesia, the Philippines, Thailand and South Korea.

via CNBC

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza