If Jason Daw is right, some of the world’s biggest investors are setting themselves up for a major disappointment. The Singapore-based strategist at Societe Generale, one of the few to anticipate the slump in emerging markets beginning in January, sees no imminent turnaround for the asset class. While bears are in agreement that emerging markets will remain under pressure in 2019, they’re split on what will be the primary source of pain. “I expect all three to have significant downside in dollar terms between now and the end of 2019,” Smith said. “There is a case for a rebound in EM sometime in 2019 once the peak in tightening financial conditions has been reached,” Jones said.

Source: Mint December 16, 2018 03:45 UTC