This sector may be the ‘accidental beneficiary' of a U.S. growth scare, says JPMorgan
Portfolio Pulse from
JPMorgan suggests emerging markets could become an 'accidental beneficiary' during a potential US economic slowdown. The key drivers are expected to be a weakening US dollar and potential reduction in US interest rates, which could create favorable conditions for emerging market investments.
March 18, 2025 | 11:30 am
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POSITIVE IMPACT
JPMorgan's outlook suggests potential upside for broad emerging market investments through EEM.
Macroeconomic shifts favoring emerging markets could drive increased investor interest in broad market ETFs like EEM.
CONFIDENCE 70
IMPORTANCE 75
RELEVANCE 80
POSITIVE IMPACT
Potential dollar weakness and interest rate changes could positively impact emerging market ETFs like VWO.
Lower US interest rates and dollar weakness typically benefit emerging markets by reducing borrowing costs and making their exports more competitive.
CONFIDENCE 70
IMPORTANCE 75
RELEVANCE 80