Emerging Markets: Stick To Countries With Current Account SurplusesVW Staff
Investors have quit emerging markets (EM) in droves in recent days following currency upheavals and a rethink on their growth prospects once central banks starting hiking interest rates to stem the rout.
“Many factors have been blamed for this latest burst of emerging market weakness – Fed tightening, rising political tensions, China credit concerns. But the most consistent concern seems to be current account deficits,” observe Citi’s Global Strategy Team in their recent research note ‘Avoid Big Deficits.’ “At times of rising market volatility, investors seek . . .
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