Time to look at Emerging Markets: Morgan Stanley

Several Morgan Stanley analysts, led by Andrew Sheets, said it's time for investors to take more calculated risks and take a look at emerging markets.

"'Value' assets are challenged by our forecasts for growth, oil, rates and currencies. ‘Defensive’ assets are already rich. We think this backdrop favors 'quality carry' – assets that can beat inflation, with some protection against weaker growth. Securitized products and emerging market local rates fit this bill."

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The analysts added that securitised debt has lagged behind a rally in the US and Europe with room to help structured assets outperform further down the field.

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The analysts also highlighted their optimism for emerging market bonds as they are poised to continue their recent positive performance.

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Read more at Bloomberg.