| Dear Investors,
This week we examine the prospects for emerging markets as the US/China dispute calms and a wave of interest rate cuts has boosted growth expectations.
Key takeaways:
- Emerging markets have the ability to ease interest rates further to stimulate growth
- We continue to prefer carry strategies in a low interest rate environment
- We remain overweight emerging market hard currency debt and believe EM currencies are undervalued
- The US/China trade dispute remains the single greatest risk to emerging economies’ outlooks
- In the long term, the global economy will depend on emerging markets for more diverse growth sources.
Best regards, Stéphane Monier
Chief Investment Officer, Lombard Odier Private Bank | 
