Emerging Market Investors Prepare to Buckle Up for 2017

Emerging markets are growing, lifted by rising commodity prices and foreign investment. However, a rising dollar, higher interest rates and protectionist policies as promised from developed countries will pose challenges. “US relations with China will cause EM [emerging markets] much angst,” write Roger Blitz and Elaine Moore for Financial Times. They add that countries that have diversified economies and enacted structural reforms are better prepared to withstand new policies from developed countries. The markets anticipate rising interest rates, already started by the US Federal Reserve which could be followed by Europe and Japan as well. Countries dependent on foreign investment like South Africa and Turkey could be at risk. Countries like Indonesia and India can be expected to respond to ongoing pressures with capital controls. – YaleGlobal