VanEck portfolio manager Fran Rodilosso (pictured) has reviewed the international fixed income markets, and writes that November was a watershed month for global financial markets.
Trump’s win caused a swift sell off in emerging markets bonds, which has continued following the Fed’s hawkish outlook, Rodilosso says. Near term, he expects volatility to remain elevated given uncertain economic and political developments.
“The good news as we enter 2017 is that emerging markets fundamentals are at a favourable starting point relative to developed markets,” he says. “We believe emerging markets assets can do better than recent press and analyst coverage may suggest, and there may be attractive opportunities to add exposure.”