Bank of America: larger flow in early 2026 to emerging markets

Emerging markets are likely to be greater investment flow early next year, with the increasing indicators of the elasticity of these economies, pushing more to move away from US assets, according to Bank of America. “People will be more optimistic at the beginning of next year when they make sure that the impact of commercial tensions on the economy will be limited,” says David Honer, head of the bank’s fixed revenue strategy. He added: “Even the small flow of the United States can have a significant impact.” Also read: The dollar unrest brings back the glare to emerging markets, the most important of Hunner, who has retained its optimistic vision of emerging markets since the first quarter, that this group of assets will benefit from the weakness of the dollar, and from the possibility of reducing interest rates by local central banks, in addition to historically low exposure. Analysts at Morgan Stanley have indicated that foreign purchases of emerging markets have been limited so far, but they expect the new streams to contribute to the revival of the sector in recent months of the year. The most important beneficiaries of the flow. These remarks reinforce the wave of optimism about the emerging markets, as investors bet on the superiority of this asset category above their peers in the advanced markets, with the start of the world funds that have remained to increase their investments within developing markets. The debt of emerging markets gave investors a return of about 9% this year, according to the “Bloomberg” index, compared to a 7.5% return on the debt of advanced markets during the same period. Honer said that Brazil, Mexico, Colombia, Turkey and Poland will be one of the most important beneficiaries of foreign flow. He added that the Asian effects indicated in local currencies are likely to attract the liquidity, as the prices of already low interest and the preference of the worst currencies in the export of reliable economies limit the chances of gaining profits. Pressure on the US dollar The US dollar performance is influenced by the expectations of the Federal Reserve to lower interest rates this month, as well as concerns about the customs and financial policies of US President Donald Trump. The ‘Bloomberg Instant Dollar’ index has dropped by more than 8% this year to approach the registration of its biggest annual decline since 2017. Dollar since early April. “The dollar was always rising, and the US markets achieved a very excellent performance, so there was no real interest in emerging markets. There was now room for diversification, and we are still in the early stages of this process.”