Emerging Markets: A Beneficiary Of U.S. Interest Rate Cuts - Friday, 20 September 2024

• Pre-Market U.S. Trading Session / Real-Time (South African; 15h02)

• With the Federal Reserve cutting interest rates, money could potentially flow out of developed markets, into high yielding EM geographies.

• In addition, high valuations in the U.S. may be a driver for flows into markets with a lower valuation/rating.

• The Emerging Markets ETF (EEM) trades at a substantial discount to the S&P 500.

• Current level: $43.78

• Medium Term Target: +$48

• Stop-loss/invalidated below: $37

  
  

Lester Davids

Analyst: Unum Capital