📝Favour Emerging Markets When The Fed Beings to Cut Rates: UBS

When the Fed begins to cuts rates, emerging markets should take centre stage, according to comments made by panelists at the European Conference on Wednesday. One panelist is expecting this to begin in H2 of 2024.

In particular, the economic transitions currently seen in India and China should enable them to strongly outperform.

Panelists did not limit the outperformance to equities, with EM bonds and currencies also expected to display strength. Vietnam, Mexico and Brazil were cited as favourable, provided that US economic performance weakens. - UBS Strategy