Some investors are betting on a revival in emerging markets as concerns grow over US growth and the dollar weakens, according to Bloomberg. Expectations that Trump’s tariff plans will slow the US economy have pushed portfolio managers toward Latin American currencies, Eastern European bonds, and local EM assets. JPMorgan’s Bob Michele says EM assets now look cheap after years of underperformance. Most emerging currencies have risen against the dollar in 2025, with Brazil, Chile, and Colombia leading the gains. The Mexican peso is up 3% year-to-date, drawing strong interest from hedge funds despite its sensitivity to tariff news.
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00:00It's Benzinga bringing Wall Street to mainstream investors are betting on a revival in emerging
00:04markets as concerns grow over U.S. growth and the dollar weakens, according to Bloomberg.
00:08Expectations that Trump's tariff plans will slow the U.S. economy and push portfolio managers
00:14towards Latin American currencies, Eastern European bonds and local E.M. assets.
00:19JP Morgan's Bob Michel says E.M. assets now look cheap after years of underperformance.
00:24Most emerging currencies have risen against the dollar in 2025,
00:28with Brazil, Chile and Colombia leading the gains. Mexican pesos up 3% year-to-date,
00:34drawing strong interest from hedge funds despite its sensitivity to tariff news.