Hermes: Trump is Biggest Threat to Emerging Markets

Never mind China slowing down, says Hermes' Gary Greenberg. The biggest threat to emerging market returns is President Trump

Emma Wall 20 September, 2017 | 11:38AM

“Everything about investing in emerging markets right now is relatively predictable,” said Gary Greenberg, Hermes head of emerging markets.

“Trump is the only unknown. We know that Chinese GDP is slowing to around 5.5%. We know that Russia will continue to meddle in neighbouring countries and negotiate over energy tariffs. We know that Brazil is emerging from recession. We know that South Africa will muddle along – despite a difficult economic backdrop. We know that Mexico will have an election next year. What we can’t predict is what President Trump will do – or even say.”

Speaking at a press briefing this morning, Greenberg, who runs the five-star Hermes Global Emerging Markets fund, said that policy risk from the US posed the greatest risk to emerging market investor returns right now.

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Securities Mentioned in Article

Security NamePriceChange (%)Morningstar
Rating
Alibaba Group Holding Ltd ADR309.81 USD1.48
Amazon.com Inc3,217.01 USD0.31
Facebook Inc A267.56 USD2.36
Tencent Holdings Ltd565.00 HKD0.09

About Author

Emma Wall  is former Senior International Editor for Morningstar

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