Not every country’s financial market is suffering fallout from Donald Trump’s return to the White House — and money managers say relations with the U.S. are playing a growing role in deciding where to invest.
As the likes of Colombia and Mexico are rattled by tariff fears, assets of nations seen as benefiting from close ties with the U.S. leader, like Argentina and Ecuador, are getting an extra lift. While that’s particularly true in Latin America, where most countries count the world’s largest economy as a key trade partner, the Trump "friend-or-foe” factor is impacting emerging-markets across the globe, from India to Vietnam.
"Winners here are not the traditional ones that we’d think about — there’s a new set of countries that will emerge as winners,” Amer Bisat, a managing director and head of emerging markets fixed income at BlackRock, said at a recent industry panel. In today’s world, a country that "aligns itself politically to the U.S. ends up being the winner — and that becomes much more of a transactional relationship.”
With your current subscription plan you can comment on stories. However, before writing your first comment, please create a display name in the Profile section of your subscriber account page.