{"id":622159,"date":"2018-11-28T04:20:04","date_gmt":"2018-11-28T04:20:04","guid":{"rendered":"https:\/\/enterpriseam.com\/egypt\/2018\/11\/28\/market-players-see-2019-as-the-comeback-year-for-ems\/"},"modified":"2018-11-28T04:20:04","modified_gmt":"2018-11-28T04:20:04","slug":"market-players-see-2019-as-the-comeback-year-for-ems","status":"publish","type":"post","link":"https:\/\/enterpriseam.com\/egypt\/2018\/11\/28\/market-players-see-2019-as-the-comeback-year-for-ems\/","title":{"rendered":"Market players see 2019 as the comeback year for EMs"},"content":{"rendered":"

Portfolio managers and strategists see 2019 as a comeback year for EM shares<\/strong>, which took a beating throughout much of 2018, according to Bloomberg<\/a>.<\/p>\n

Triple trend reversal next year:<\/strong> Next year could see a \u201ctriple trend reversal,\u201d Morgan Stanley strategists suggest, pointing to prospects for 1) faster growth in China on the back of monetary easing; 2) a weaker USD thanks to a mid-2019 pause in the Fed\u2019s rate hikes and 3) a \u2018hiatus\u2019 in America\u2019s trade war with China. All of this \u201cbenefits EM equities the most,\u201d they wrote in double-upgrading the asset class to overweight relative to benchmarks from underweight. JPMorgan strategists see the US Fed slowing its pace of rate hikes next year, a move that would help EMs heavily geared up with USD-denominated debt. JPMorgan strategists see the MSCI EM index gaining 13% gain by the end of 2019 \u2014 the gauge is down almost 16% for 2018, \u201cthe third-worst performance since the global crisis in 2008.\u201d<\/p>\n

Low valuations also present opportunities:<\/strong> Emerging-market valuations are approaching \u201ccrisis levels,\u201d presenting a long-term buying opportunity, a PM at Franklin Templeton suggests. JPM, meanwhile, likes Russia, Indonesia, Brazil and Chile.<\/p>\n

In miscellany this morning:<\/p>\n