Emerging Market Investor Picks for 2017

Bloomberg News offers a list of popular emerging markets for 2017 and the reasons why investors should be targeting them:

  • Russia: The ruble is a “top bet” for investors that “borrow currencies with low interest rates and buy high yielding ones.” According to UBS Group AG, the ruble’s “carry trade” could potentially return 26 percent over the next 12 months.
  • South Africa: Some investors see President Jacob Zuma’s power waning, which could lead to a debt downgrade and boost the attractiveness of the country’s stocks and bonds.
  • Mexico: The peso is the “most attractive among developing Latin American peers.”
  • Brazil: Carlos Gribel, head of fixed income at Andbanc Brokerage in Miami, says that Petrobas bonds are “still cheap” and that Banco do Brasil’s Coco bonds have upside potential.
  • Chile: Morgan Stanley and JPMorgan Chase say Chilean stocks will benefit from rising copper prices and the prospect of more business-friendly policies after its presidential election in the coming year.
  • India: Given president-elect Trump’s plan to focus on protectionism, India’s assets are “looking increasingly attractive” and the Prime Minister’s decision to “withdraw high-denomination bills” could prompt interest rate cuts and bolster bonds.
  • Indonesia: Some of the biggest companies on its benchmark share index are “either domestically-focused consumer firms or miners, which should benefit if coal and nickel prices keep rising in 2017.”