By Morgan Harting
The nascent recovery in emerging markets (EMs) has been thrown into question by Trump's election. While the concerns warrant attention, we still see compelling reasons to invest in developing economies.
After 10 strong months, investor sentiment toward EMs has soured. Since the US election, rising US interest rates and a strengthening dollar have threatened to hurt EM countries and companies. Trump's promises of protectionist policies have alarmed countries from Mexico to China. And from Brexit to the recent Italian referendum, there are growing signs around the world that populist trends are threatening to reverse globalization, which has benefited the developing world for decades.
But let's put some perspective on the risks. The shifting geopolitical order may dilute the power of US trends over the developing world. Favorable domestic economic trends in EM countries could offset potential damage from US policies. And opportunities can still be found in… Read More …