Jul
11
Run-Up to U.S. Recession May Be Good Time for Emerging Markets
By-
EM assets typically outperform when U.S. yield curve inverts
- Spread between U.S. 10-year, 2-year yields at 11-year low
If the end of easy money, a trade war and myriad geopolitical dangers weren’t enough, a U.S. yield curve poised to invert is adding to the risks for investors. But there’s one asset class that’s less of a worry: emerging markets.
Every time the yield curve has flipped in the past three decades, sending shorter-term interest rates above longer-term ones, the U.S. economy has entered a recession within 12 to 24 months. While that correlation makes the inverted curve a risk-off signal, it’s been a different story with emerging-market assets…
Run-Up to U.S. Recession May Be Good Time for Emerging Markets
