BofA Securities: Weaker Dollar, Emerging Market Assets Expected to Deliver Percentage Points of Return
According to a report by Jinse Finance, BofA Securities stated that as the market expects the dollar to continue weakening, emerging market assets are likely to deliver several percentage points of returns this year. David Hauner, Head of Global Emerging Markets Fixed Income Strategy at BofA Securities, said, "We have every reason to maintain our expectation of double-digit returns for emerging markets throughout the year. We believe the dollar is the most important driving factor and expect the long-end U.S. market to stabilize." BofA Securities holds an optimistic view on Eastern European currencies and stocks. In the fixed income market, Brazil remains its preferred investment destination due to its very high interest rates, which may start to decrease by the end of this year. Currently, the dollar is nearing its lowest level in two years. Major Wall Street banks, including Morgan Stanley and JPMorgan, also believe that due to potential Fed rate cuts, slowing economic growth, and ongoing uncertainties in fiscal and trade policies, the dollar will weaken further, which may accelerate the flow of funds from U.S. assets to developing countries. (Jin10)
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