Back

Why 2024 could be the year for emerging market resurgence

29.02.2024
By RisCura

According to Glenn Silverman, RisCura’s investment strategist, “Typically, when the dollar strengthens, emerging markets underperform, and when the dollar weakens, emerging markets rally. Currency weakness in most key EMs has had a significant impact on EM underperformance. However, once the US cuts its rates, the US dollar is expected to weaken, which should then boost emerging market performance.”

One reason for optimism is the potential for interest rate cuts by the US Federal Reserve. Lower interest rates in the US could lead to increased investment flows into EMs, as investors seek higher returns. Additionally, a weakening US dollar could make EM assets more attractive to foreign investors.

The article also acknowledges the headwinds facing EMs, such as China’s economic slowdown. However, it argues that China’s fundamentals remain strong and that the recent stock market sell-off may be an overreaction,. While suggesting that 2024 could be a pivotal year for emerging markets. While there are still risks to consider, the potential for a turnaround is significant.

Read the full article here:  https://www.abizq.co.za/why-2024-could-be-the-year-for-emerging-market-resurgence/

Author

  • RisCura is a global financial services firm with more than $200 billion in assets under advice and reporting. We partner with institutional investors across emerging markets, bringing specialist investment management, advisory, and analytical expertise to help clients make informed, long-term investment decisions.

    Guided by our “Invest with Care” philosophy, we recognise that investment decisions are not only about money and numbers, but about the people and futures they affect. Through tailored solutions, deep research, and a client-centric approach, RisCura helps investors navigate complexity, manage risk, and create lasting value for their beneficiaries.

    RisCura is known for its focus on liability-driven investing, responsible investment practices, investment transparency, reliable valuations, independent risk assessments, performance standards, and long-term investment outcomes.

    Our capabilities span investment advisory, investment management, investment analytics, institutional platform services, and alternative investment services. Across these areas, we combine consistent methodology and proprietary tools with deep local insight, recognising that each market is unique while responsible investing remains universal.