UBS: Emerging Markets to Struggle Early Before Rebounding in 2024 as Fed Cuts Rates
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Emerging market (EM) assets expected to struggle early in 2024 before improving later in the year.
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UBS predicts EM fixed income to return 8-10% in 2024, EM equities 6-8%, currencies 1-3%.
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UBS sees U.S. interest rates falling substantially in 2024, ending the year between 2.50-2.75%.
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Weaker global growth not priced into markets currently.
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UBS expects a better 2024 for EM assets as Fed rate hikes fade and growth differentials improve.