JPMorgan Chase, along with other fund managers, are flocking to emerging markets amid the volatility that has clouded global financial assets due to the escalating Israel/Iran conflict.
The Trump administration’s unprecedented tariffs on the EU hit emerging markets hard in April.
Asset managers are increasingly confident that the final tariffs won’t be as high as originally proposed.
“Only 1% of respondents expect it to be above 30%.” The survey revealed that the average US tariff rate will be around 13%.
Experts at BofA believe that Uzbekistan is a market with a lot of potential, given the above-mentioned backdrop.
What did JPMorgan say about investing in Uzbekistan
BofA strategists believe that Uzbekistan will “benefit” from the high gold price, which they believe will continue to rise in an uncertain geopolitical climate.
In a recent note to clients, the bank’s strategists claimed that credit rating agencies would soon upgrade their opinions on Uzbekistan’s sovereign debt held abroad by foreign investors.
Recently, their peers at JPMorgan recommended that they also increase exposure to the Central Asian country.
JPMorgan stated that, in the current macroeconomic environment, it is reasonable to invest more in Uzbekistan than Dubai’s real-estate bonds because it is “geopolitically secure” and offers “similar yields or higher,”
According to data from the World Bank, Uzbekistan’s gross domestic product (GDP), has grown by 5.3% annually on average since 2017.
Investors will still have other opportunities in emerging markets by 2025.
There are also opportunities in other emerging markets
Greg Luken, a market veteran and founder of Luken Wealth Management who founded the company in early 1990s, sees many opportunities in India Brazil and China for investors looking to gain exposure to emerging markets.
Luken recommends that investors invest in these Asian economies because they offer “favourable demography and huge discounts relative US markets.”
In a recent interview, he said that emerging markets would no longer be the “redheaded child” that receives asset allocations of up to 4,0% only because global investors are diversifying away from the US amid escalating geopolitical and macro risks.
Other experts, such as Peter Sidorov and Mallika Sachdeva of Deutsche Bank, are also bullish about emerging markets. In a note published earlier this month, they stated that “the time for the Global South has come.” This bloc includes 130 countries, including India, Pakistan and Bangladesh.
In its latest research note the investment bank highlighted several positive factors for “Global South”, including changing demographics. According to Deutsche Bank the region will house at least 70% of global workforce by the middle of the next decade.
This post JPMorgan prefers Uzbekistan to Dubai’s real-estate bonds: Here’s why could be modified as new developments unfold.
This site is for entertainment only. Click here to read more
