The MSCI Emerging Markets index has returned around 7% this year and has reached a near-three-year high. But the rally’s days look numbered, reckons Fidelity’s Tom Stevenson in The Sunday Telegraph.
For one thing, valuations no longer look compelling, especially when you consider that earnings have not kept pace with prices. Headwinds are gathering. Interest-rate hikes in the US are moving closer, implying that money will leave traditionally risky emerging markets and head back to the West as the yield on [...]