Trump's 2025 Win: Emerging Markets on Shaky Ground

Investors are facing uncertainties regarding emerging markets following Trump's potential 2025 White House return. The strong U.S. dollar and potential policies like tariffs pose challenges. Despite some optimism, sectors may benefit from shifts in geopolitics, impacting investments in developing economies.

The potential return of Donald Trump to the White House in 2025 has investors eyeing emerging markets with caution. After years of global interest rate hikes and economic turmoil, the landscape is fraught with challenges, chiefly due to the U.S. dollar's robust rally and fears of tariffs and unfunded spending.

According to Yerlan Syzdykov of Amundi, emerging market investors should brace themselves for significant policy shifts, potentially altering investment strategies. The scenario echoes 2016, when Trump's surprise victory impacted various emerging market currencies and assets, making stakeholders wary of new geopolitical dynamics.

Despite the uncertainties, opportunities linger, particularly for countries like India and Argentina. Driven by Trump's policy approach, some sectors may find advantages amidst the shifting economic landscape, as investors continue to weigh risks and potential gains across developing economies.

(With inputs from agencies.)