Some investors are betting on a revival in emerging markets as concerns grow over US growth and the dollar weakens, according to Bloomberg. Expectations that Trump’s tariff plans will slow the US economy have pushed portfolio managers toward Latin American currencies, Eastern European bonds, and local EM assets. JPMorgan’s Bob Michele says EM assets now look cheap after years of underperformance. Most emerging currencies have risen against the dollar in 2025, with Brazil, Chile, and Colombia leading the gains. The Mexican peso is up 3% year-to-date, drawing strong interest from hedge funds despite its sensitivity to tariff news.
