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Emerging market equities, bonds earn favour 

July 25, 2016

Siddesh Suresh Mayenkar, Gulf News

Fund managers are urging investors to look at emerging equities and bonds, which are providing returns comparable to developed markets.

Emerging-market stocks are gaining as expectations that the Federal Reserve will refrain from raising interest rates this year, and better-than-estimated economic data from the US, stoke risk appetite. Conversely, the developed markets, especially the US equities, have been on a record breaking spree, extending a seventh year of gains, and fund managers feel that the rally may run out of steam.

“We see attractive opportunities in emerging markets where valuation discounts compared to developed market peers are reaching historical extremes,” Norman Villamin – Chief Investment Officer Private Banking, Union Bancaire Privee (UBP) told Gulf News in an email.

UBP has expanded its focus to Latin America and Eastern Europe from the previous Asian economies.

“We are increasingly seeing policy makers in emerging markets, which had been tightening policy in recent years, shifting to a more accommodative stance to support their domestic economies,” Villamin said. Read more

 

 
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