Langridge: EMs facing 'unpleasant cocktail'

Emerging markets are facing an "unpleasant cocktail" of macroeconomic headwinds, but these are cyclical pressures that represent a buying opportunity, says Jupiter's Kathryn Langridge.

The manager of the £28m Jupiter Global Emerging Markets fund, which launched in November, adds the volume capital flows out of emerging markets and into developed markets is the largest she has seen in her career. “The rotation we have seen in the last two months is the steepest I have ever seen,” she says. “It is high velocity money. “This is a short-term cyclical correction driven by the implications of rising interest rates on liquidity and growth. The markets will remain under pressure until evidence builds inflation has peaked. “It is an unpleasant cocktail emerging markets ha...