Bruised emerging markets are battle-ready for a US recession

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Bruised emerging markets are battle-ready for a US recession
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Emerging markets are well positioned to stare down a US recession and may even be able to lure investors their way. Monyweb Recession Economy

Emerging markets are well positioned to stare down a US recession and may even be able to lure investors their way. That’s the message from money managers including JPMorgan Chase & Co. and Deutsche Bank AG even as fears of a contraction in the world’s largest economy spark a dash into Treasuries and other haven assets. Beyond the short-term turbulence, they say, developing nations will be cushioned by cheap valuations, higher yields, faster growth and above all, a resurgent China.

” Stimulus nation Of all the factors investors say would minimize the impact of a shrinking US economy, none ranks higher than China. They are betting on a rebound in world’s second-biggest economy in the second half as the government gradually eases Covid restrictions and policy makers loosen monetary settings.

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