Three emerging markets that caught our eye

Clients and regular readers will be aware of our top-down, country-driven process, which seeks to identify the most attractive emerging equity markets. The growth outlook and market-level valuations are key components of our process, but so are the economic sustainability of growth and the political environment. It is these last two points for three particular emerging markets that have caught our collective eye recently. Brazil remains mired in a dire economic position with the economy in a deep recession but inflation at nearly 9%, even as it seemingly undergoes a transition in political leadership. The elected president, Dilma Rousseff of the left-wing PT party, has been impeached and replaced by former Vice-President Michel Temer. Due to the steep drawdown in demand, and hence imports, the Brazilian current account balance has improved markedly. Read more on Brazil & the other two countries that caught our eye here: (VIEW LINK)