This year has been a bad one for emerging-market (EM) assets, say Christian Keller and Koon Chow of Barclays. At their mid-summer lows, EM shares – as measured by the MSCI Emerging Markets Index – had fallen by around 17% in US dollar terms since the beginning of January.
While subsequent months saw a partial recovery, “investors have generally remained sceptical” and markets have certainly not recovered all their losses. The MSCI Emerging Markets Index is on course to finish the year down by around 6%, compared with a 19% gain for developed markets.
Given that emerging economies have “spent [...]
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