Summary
Short-term challenges, long-term opportunities
Two major drivers are shaping the landscape for EM countries: Covid-19 and oil dynamics. We are mindful that current events will have very significant negative effects on the economic outlook for EM this year, leading many countries into recession.
However, for those experienced in financial markets, shocks are nothing new, particularly within EM. The GFC and the US-China trade war are two recent examples of crises that we have learned from and that mean the current shock has not caught us unprepared.
What we have learned from the past is that through strong active management – ability and experience in asset allocation, security selection and risk management – investors can weather such storms.
Crises create market dislocations and accelerate long-term trends, providing new and evolving opportunities.
Investors have to stay agile, focused and prepared to capture new opportunities in fast changing environment.
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