COVID | Emerging Markets | Monetary Policy & Inflation
Following promising vaccine results, bullish sentiment over EM is building. To discuss this, we welcomed Dirk Willer, Managing Director and Global Head of Emerging Market Strategy research at Citi onto our latest podcast show. Willer joined Citi in 2005, heading Latin America strategy for nine years before taking the helm of EM strategy in 2014. His team was ranked #1 in an institutional survey as the top strategy team for EM.
Bullish EM Outlook Post US Election and Vaccine News
Dirk sees a strong bullish case for EM post vaccine results. This is particularly so for Latin America, which has been the most sensitive to COVID and global growth prospects. As such, one might expect to see a minor rotation from Asia into Latin America amid the broader shift into EM and risk assets. After an extended period of lacklustre performance, emerging market assets are seen to have potential for a robust bull market. The key risk to this view is a strengthening or stable USD, which will create an environment for fundamentals-based performance dispersion rather than an asset class rally.
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