Bigger Yard, Higher Fence?
Source: SeekingAlpha
2025-05-30 03:10:00 ET
Summary
- Emerging markets may be well positioned to benefit from a secular shift in global production and capital flows.
- Latin America, in particular, stands out not only for its exposure to this realignment but also for offering some of the highest real yields globally.
- In Asia, investor opportunities could favor currency (FX) markets. However, many institutional investors in the region hold substantial US dollar assets, much of which remain unhedged.
- Central European markets, including Hungary, Poland, and Czechia, also present asymmetric upside as global investment flows begin to rotate.
By Michael Arno, CFA
The interplay between policy-driven trade realignments, cyclical relative growth shifts, structural capital flow adjustments, and relative currency valuations could open new avenues for alpha generation in emerging markets. ...
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Bigger Yard, Higher Fence?
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