(Bloomberg) — Some investors are betting the good times are only beginning for emerging markets as worries over the US economy boost the allure of the long-suffering asset class.
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Fueling the shift are expectations that President Donald Trump’s tariff policies will weigh on US growth and force traders to look abroad, a wager that has portfolio managers scooping up everything from Latin American currencies to Eastern European bonds.
The moves have already sparked a run in EM equities, with a gauge set for its best first quarter since 2019. A weaker dollar has helped lift an index of developing currencies nearly 2% this year, while local bonds have also climbed.
“For the past few years, investors have piled into US assets and more-developed markets,” said Bob Michele, global head of fixed income at JPMorgan Asset Management. “Now, when you…
