Financial Times isn’t entirely bearish on EM in 2017. In its look at “Five reasons why investors are buckling up for 2017” as the investment industry “positions itself for seismic change this year,” the FT notes downside potential from EM from a Trump presidency and as many as US Fed rate hikes this year. That said, EM could still do well, two analysts say. The head of EM at Deutsche Asset Management says, “For the year as a whole we are looking for reasonable upside in emerging markets, both from the extra yield that emerging market sovereign USD bonds give and especially from emerging market equities.” A Franklin Templeton bond investor notes, “We see a number of compelling opportunities across specific emerging markets that give us optimism for the upcoming year,” while BlackRock global chief investment strategist Richard Turnhill “also likes emerging market stocks, due to improving profitability and low valuations of companies, and structural reforms in emerging market countries.”

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