Emerging markets (EM) performance has been held back over the first three quarters of 2021 by a few factors, including the spread of the Delta virus variant in less vaccinated countries, news out of China (growth slowdown, regulation crackdown, and the housing slowdown alongside the Evergrande fallout), and the upcoming Fed tapering.
Although some idiosyncratic risks remain and uncertainty is high, we believe that most of the bad news is behind us. As such, EM should manage the current situation and they are better positioned to do so than they were in 2013, when the Fed first tapered its purchase programmes. A few elements support our view:
You can now read the full whitepaper at the link below
