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Fasdal: Why investors could soon return to emerging markets

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With the US Fed holding off on rate hikes, commodity prices stabilising and local currencies strengthening against the dollar, investors may soon start to return to emerging markets, says Saxo Bank’s Simon Fasdal.

While investing in developing countries is more risky in terms of economic fundamentals and politics, Fasdal believes that markets are reaching the point where all risk factors have been priced in. He adds that excessive risk premiums may attract investors back into emerging market assets.