The January rally in Asia and the emerging markets could just be a “bear-market bounce,” says JPMorgan Asset Management’s Jasslyn Yeo, according to South China Morning Post.
Key quotes
- I am not willing to back off on the whole bear-market bounce story because there are increasing downside risks to growth.
- The rebound could last only in the first half of this year because we are in such a late stage of the cycle and recession risks have increased.
- Among Asian equities, Yeo prefers China, Korea and Indonesia and remains cautious on India and the Philippines.
- Emerging markets are likely to outperform their developed counterparts in a risk-on environment because of their higher beta.
Share
