Five emerging markets to buy or sell as Fed tightens policy

Strong US data in the past few weeks has encouraged investors holding large US positions, but does tightening monetary policy spell trouble ahead for emerging markets?

Improving economic data has triggered a new bout of speculation over the Federal Reserve’s monetary tightening plans, with emerging markets potentially in the firing line once again. Analysts from both Goldman Sachs and J.P. Morgan have brought forward US rate hike predictions to the third quarter of 2015 as a result of strong growth. Others have pointed to the falling unemployment rate – 6.1% in June – and questioned whether the Fed will come under pressure to raise rates even sooner. But, as it did last summer, any tightening of monetary policy is likely to have a knock-on effect on...