TEMIT's Sehgal: US dollar strength remains a risk

Global supply chains and trading relationships came under pressure and emerging markets (EMs) appear to have borne the brunt of the fallout: an asymmetric—and, in our view, excessive market reaction that has contributed to valuations dropping to near crisis levels. However, we believe these valuations represent increasingly attractive buying opportunities, given where fundamentals stand. Trade tensions have been a primary contributor to weakness in 2018. However, while exports remain a key engine of growth, they are increasingly shipped to other EMs; the relative importance of develop...