The outlook for growth and inflation in the emerging markets of Brazil, Russia, India and Mexico as a whole, can expect growth to improve modestly and inflation to fall. The outlook is mixed, however. US President Trump has thrown a wrench in the situation. Relative political stability, economic resurgence in some of the larger nations and the emergence of reform-oriented governments make emerging economies an attractive investment target. Trade and the US Federal Reserve remain wildcards in the upcoming months. The US dollar continued to appreciate in 2016 but has eased into 2017, leaving emerging markets currencies a bit battered but they weathered this relatively well.
A rapid appreciation in the dollar would negatively affect the profitability of companies with dollar-based costs. This leaves a lot of questions about investments in the Ems but there are a lot of opportunities if you hedged the risks. Emerging market stocks have been in cheap since 2013. They recovered in 2016 only to be beaten back down after Donald Trump’s election victory leaving plenty of opportunities.
Barry NormanThe Director of Investors Trading Academy as well as a published author and educator. Barry brings with him over 35 years of financial market knowledge and experience. He holds an MBA in Finance and Economics from UCLA and an undergraduate degree in Economics from the University of Maryland. Barry was award the title of “Best Education in Europe” by Global Banking & Finance. Barry is also a presenter for the MoneyShow and many well-known news sources.