David Dali, Portfolio Strategist, Matthews Asia sat down with Julie Cooling, Founder & CEO, RIA Channel to discuss 2019 trends in emerging markets and Asia.
“2018 was a perfect storm,” says Dali on the volatile performance from Asia and emerging markets. Tightening rates, a strong U.S. dollar and tensions around trade were some of the major factors contributing to last year’s rough returns.
Going into 2019, Dali maintains an optimistic outlook. “A lot of the headwinds experienced in 2018 are quickly fading,” believes Dali. The Fed has seemingly relaxed on raising rates, and in turn there is more flexibility around monetary policy. On the political front, both the U.S. and China appear to be motivated by trade resolution.
Dali suggests that one way of reducing EM volatility, is to incorporate exposure to local and consumer driven businesses. The Matthews Asia portfolio strategist team works closely with advisors to identify current portfolio exposures and build complementary strategies around them.
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