22nd May 2018

Investec Wealth and Investment: Opportunity Knocks

Welcome to this week's edition of Weekly Digest; a topical in-house review of world stock markets and the global economy. 

This week, our Head of Investment Strategy, John Wyn-Evans, looks at two asset classes that are very closely linked; the US dollar and Emerging Markets.

"The main opportunity I want to address concerns the US dollar and Emerging Markets, two asset classes that are very closely linked. The investment community has developed a Pavlovian response to dollar movements: when it rises, EM assets (currencies, bonds and equities) go down, and vice versa. To make matters worse, EM equities tend to display a positive correlation with their currencies, quite the opposite of the normal experience in Developed Markets."

Investment Commentary, Investments