Emerging Markets (EM) badly hit by a stronger Dollar (USD)

Both domestic and foreign economic policies of US President Donald Trump have real consequences for America whose stock market have reached new highs for one year and a half on the one hand, for Emerging Markets (EM) whose currencies have been under increased pressure for several months on the other hand.

Considering the good results in corporate earnings, consumer confidence and economic growth which are all at very high historical levels, the US economy draws most of the investors’ attention around the world.Given its tough trade talks and its geopolitical clout, the US economy appears as a land of opportunity and as a safe haven for many investors who seek profit and safety.

In the meantime, the US Dollar (USD) gets stronger and capital flows into the US economy rather than in EM. As Sir John Templeton used to say, “trouble is opportunity” especially when you have strong USD to invest after years of stock valuation booming.