Bank of America Securities: The weakening dollar is expected to bring several percentage points of returns for emerging market assets
ChainCatcher news, according to Jinshi reports, Bank of America Securities stated that as market expectations for a continued weakening of the dollar grow, emerging market assets are expected to yield several percentage points of return this year. David Hauner, head of global emerging markets fixed income strategy at Bank of America Securities, said: "We have every reason to maintain our expectation of double-digit returns for emerging markets this year. We believe the dollar is the most important driver and expect the U.S. long-end market to stabilize." Bank of America Securities holds an optimistic view on Eastern European currencies and stocks. In the fixed income market, Brazil remains its preferred investment destination due to the country's very high interest rates, which may start to decline by the end of this year.Currently, the dollar is nearing its lowest level in two years. Major Wall Street firms, including Morgan Stanley and JPMorgan Chase, also believe that the dollar will weaken further due to the possibility of the Federal Reserve cutting interest rates, slowing economic growth, and ongoing uncertainties in fiscal and trade policies, which may accelerate the flow of funds from U.S. assets to developing countries.
