The synchronisation element is a key for market participants to explore new venues for investment returns in 2018. According to a report published recently by the International Monetary Fund (IMF), the world’s economy experienced a kick-start in global activity in 2016, which then was also sustained in the first half of 2017.
The gathered momentum was primarily brought about by the firmer domestic demand, mainly triggered by the overflow of money by the ECB, in addition to China, which also registered a pick-up in domestic demand. Thus, it is interesting to see how this pick-up in global growth will affect certain geographical areas.
Interestingly enough, the fostered optimism in global growth is also having positive expectations for growth in Emerging Markets (EM) and by an extension to Frontier Markets. Such perception might come as a surprise to many market participants when considering the fact that credit markets experienced tight valuations as investors prolonged their search for yield.
The said optimism comes after a difficult period for EM in terms of GDP growth coupled with volatile currency movements, but predominantly by the fall in oil and other commodity prices. In...
