Emerging markets (EM) have had a torrid time but there are some great opportunities in the asset class, such as Mexico, which is in a very solid, robust state. There are, however, some real basket cases like Turkey, which has low reserves, political instability, inflationary pressures and low growth. Selection is therefore key, but with EM countries selling off indiscriminately, it will pay to wait for the dust to settle before taking advantage of the opportunities later this year.
Stephen Marsh is European head of fixed income at SEI
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