Emerging markets

The only thing that seems to matter for the EM, as a region: looser financial conditions.

We bought a small amount of EM equities, after that week in which the Golden Dragon ETF fell by a quarter (this is the US listed China centric stocks). That trade didn’t work so well, the index continued to fall, the region continues to struggle, and the answer of course is because rates, the dollar, and commodities continue to weigh against it.

We are nearing the end of US tightening (approaching the “peak fed funds rate”) and will be stepping down from jumbo-sized hikes, to more moderate one’s, before an eventual pause.

At that stage, we will likely nibble further at EM equities. Of course, should China actually reopen (rather than the rumour of the past few days) we would accelerate that timeline.

Important Information: This document has been prepared by Aequitas Investment Partners ABN 92 644 165 266 (“Aequitas”, “our”, “we”), a Corporate Authorised Representative (no. 1284389) of C2 Financial Services, (Australian Financial Services Licensee no. 502171), and is for distribution within Australia to wholesale clients and financial advisers only.

This document is based on information available at the time of publishing, information which we believe is correct and any opinions, conclusions or forecasts are reasonably held or made as at the time of its compilation, but no warranty is made as to its accuracy, reliability or completeness. To the extent permitted by law, neither Aequitas nor any of its affiliates accept liability to any person for loss or damage arising from the use of the information herein.

Please note that past performance is not a reliable indicator of future performance.

General Advice Warning: This document has been prepared without taking into account your objectives, financial situation or needs, and therefore you should consider its appropriateness, having regard to your objectives, financial situation and needs. Before making any decision about whether to acquire a financial product, you should obtain and read the relevant Product Disclosure Statement (PDS) or Investor Directed Portfolio Service Guide (IDPS Guide) and consider talking to a financial adviser.

Taxation warning: Any taxation considerations are general and based on present taxation laws and may be subject to change. Aequitas is not a registered tax (financial) adviser under the Tax Agent Services Act 2009 and investors should seek tax advice from a registered tax agent or a registered tax (financial) adviser if they intend to rely on this information to satisfy the liabilities or obligations or claim entitlements that arise, or could arise, under a taxation law.

Receive our investment insights

Something went wrong. Please check your entries and try again.