Navigating this year's 'perfect storm' for emerging markets

Elections and currency woes

Emerging market (EM) investors are grappling with a multitude of global and local economic events, which are exerting pressure on different pockets of the asset class, writes Nick Price, manager of the Fidelity Emerging Markets fund.

Events have unfolded at a rapid pace, having been further accelerated by spill-over effects. In an uncertain world, EM currency weakness has been pronounced and the pain is most evident among countries that look vulnerable to dollar strength. Argentina and Turkey have been the highest profile victims, but they are certainly not alone. Those countries with a relatively large current account deficit, such as South Africa and India, have also come under pressure more recently. Political headwinds While the crosshairs have been firmly focused on Turkey and Argentina, investor attention ...