Developing countries will rise in 2022, according to banking giants
Global investment banks expect emerging market assets to appreciate in 2022 with the impact of slowing inflation and accelerating growth, but not before the second half of the year.
Goldman Sachs, Morgan Stanley and JPMorgan Chase analysts spoke to Bloomberg News in their assessments of developing country stocks, bonds and currencies. They stated that they expect a rally in Chinese stocks and that they predict that local currency bonds of Poland, Czechia and Hungary will gain value.
Tai Hui, chief Asia strategist at JPMorgan Wealth Management, said: “2021 has been a year of better economic growth in advanced economies than emerging markets, and it should reverse. Rising vaccination rates in some economies will create a more positive environment. In the US, the policy rate remains below headline inflation. The fact that it will continue will lead investors to seek higher returns,” he said.
