The latest Oliver’s Insights, written by Shane Oliver (AMP’s head of Investment Strategy and Chief Economist), discusses if there are threats from emerging markets.
Key points include:
- Concerns about emerging countries on the back of various political problems and trade imbalances that leave them vulnerable as the Fed slows down its monetary stimulus appear to have triggered a correction in share markets.
- The relative weakness in emerging market shares and currencies is part of a broader turn in the long-term secular cycle away from them.
- However, while it makes sense to be cautious about emerging market shares generally, a re-run of the 1997-98 Asia crisis is unlikely and emerging markets are unlikely to pose a major threat to global economic recovery.
For the complete article click here: Olivers-Insights-threat-from-emerging-markets
As these articles often raise questions, please contact your adviser on 03 5559 7111 to discuss any concerns.