Growth stocks likely to outperform amid inflationary concerns

ON EMERGING MARKETS

Lazard's Kevin O'Hare explains how inflationary pressures are affecting EMs.

Inflationary pressures have changed the mood in the emerging markets and price hikes are now occupying the thoughts of decision makers in the developing world. Policymakers and investors alike are concerned combating inflation through higher interest rates might attract capital into their markets and strengthen the local currency, which would be a negative for the exports that have been partially driving these economies’ recoveries. One major inflationary concern is food prices, which will be a more significant issue in emerging markets than the West, as a result of the proportion of ...