EM equity outlook - BBH

Analysts at BBH share their outlook on the EM equities:

"After the US election surprise, the prospect of significant fiscal stimulus from the incoming administration led to 15% rally in the S&P 500.  This has dragged other DM and EM stock markets higher as well."

"Other positive factors for EM equities this past quarter have been 1) higher commodity prices and 2) low DM interest rates.  Despite continued Fed tightening, the US 10-year yield is currently around 2.23%, the lowest since November.  All of these offsetting factors have helped MSCI EM recoup all of its post-election losses and trade at multi-year highs."

"Whatever the global backdrop, we still believe it is very important for investors to continue focusing on country fundamentals and also on hedging out currency risk whenever feasible.  Regionally, Asia is the best equity performer so far in 2017 (up 14.0%), followed by Latin America (up 12.4%) and then EMEA (up 3.2%)."