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2025-09-13 10:21:13
[Bank of America: Emerging markets may see large capital inflows early next year] Bank of America said that as more and more signs show that emerging economies are resilient, emerging markets may see larger capital inflows at the beginning of next year, which will drive further capital transfers from US assets. "People will become more optimistic at the beginning of next year because they will be sure that the impact of trade tensions on the economy will be limited," said David Hauner, head of global emerging market fixed income strategy at Bank of America. "Even small-scale diversified investment flows from the United States can have a very significant effect." Hauner has maintained a bullish stance on emerging markets since the first quarter. He believes that this asset class will benefit from a weaker US dollar, room for further interest rate cuts by central banks around the world, and the historically low allocation of global funds to emerging markets. Hauner said that Brazil, Mexico, Colombia, Turkey and Poland will be the main beneficiaries of foreign capital inflows.
