Emerging opportunities: Time to favour EM again?

EMERGING MARKETS

Emmanuel Hauptmann, a partner at RAM Active Investments, explains why it is time to favour emerging markets again.

For the third time since 2009, the Federal Reserve is showing willingness to slow down the non-conventional expansion of its balance sheet, encouraged this time by more positive signs in the US economy. The most striking fact in markets in 2013 is the very asymmetric effect the tapering announcement has had on markets globally. Consensus has built up in the market that the liquidity injected by the Fed in the economy was, as of now, pretty irrelevant to the US economy and only having a positive impact on emerging markets. And that the tapering would only hurt negatively emerging ma...