UBS believes that as China may adopt policy loose and the political risks of major emerging economies have declined, emerging market stocks that have been frustrated before will usher in boost.
According to Bloomberg report on August 22, Alejo CZERWONKO, chief investment officer of emerging markets in America, accepted a Bloomberg TV interview: "Many haze and negative factors have been reflected in the valuation of emerging market stocks."
He expects China's possible easing policies and the recent decline in political risks in Mexico, Brazil, Chile and Colombia will support the needs of emerging market stocks.
From a historical perspective, the interest rate cuts in Brazil and Chile will support stocks of these economies, and relatively stable political risks will also boost the stock market.
Bloomberg reports that the MSCI emerging market index is less than 1%of all increases since this year.It is expected that the Fed may maintain a higher level of interest rates around the Federal Reserve for a longer period of time.
