18 February 2021
Accommodative monetary and fiscal policy played a critical role in 2020’s recovery from the earlier growth shock and risk-off capital market response. The new US administration’s near-term stimulus and extended accommodative monetary policy represents a positive impulse for global growth into 2021.
Today, we believe select emerging markets can provide investors with higher earnings growth and better relative valuations than large cap US and Australian equity markets. Asia’s emerging markets in particular, dominated by China, Korea, and Taiwan, have displayed better pandemic controls, and recorded solid recoveries. And while we believe Emerging Market equities remains an attractive asset class, it requires very careful and consistent application of active equity investment.