Amazon Special Report

Team preparation

On January 4, 2019, global markets received a very positive boost through the statements of Jerome Powell, President of the United States of America, who announced during the discussions of the American Economic Association about the Fed's patience and quenching in the future. In raising interest rates, this trend should come with a lot of continuous green for emerging markets, which have translated this through the following points: -

First ... According to the Bank of America estimates, investors in the world markets have started since January 2019 to purchase bonds by about $ 36 billion, the share of emerging markets was about 11.1 $ 1 billion

While investors bought shares in emerging markets at about $ 16 billion and sold shares in the American markets by about $ 26 billion and in European markets about $ 7 billion

Second ... The previous week from February 11 to February 15 saw a net investment of financial funds in emerging markets at about $ 2.5 billion at the highest level of flows per week since 2014


Third ... the peak of the lean seven was in the MSCI Emerging Markets Index in 2018 where the index lost about 17%, but after the Fed's reassurance, the MSCI rose by 7.9% from the beginning of 2019 until February 14, to the emerging market indicators competing with its advanced counterpart that achieved in The same period up by about 9%

Fourth ... The IIF estimates for the rise of emerging countries have risen to about 40% since the global financial crisis in 2008, and with the continued specter of US interest increases, the markets are bleeding. Emerging three times ... once from the increase in the cost of debt interest and the decline in the strength of national currencies ... and a second time from declining levels of cash flows ... and again by the negative impact of public budgets on all of the above ... so that the positive federal approach comes from These factors temporarily put pressure on emerging markets


Fifth ... the decline in the MSCI index for emerging markets did not come across in 2018 as it celebrated the effects of the trade war, the continued slowdown in China's growth, the rise in US interest, and President Trump's blatant intervention in reducing oil prices by about 35% from its highest peak in October 2018 ... This is behind the accumulation of 23% less valuations than the real values ​​of the prices of financial instruments in emerging markets, which are now very attractive, in light of the stopping of the developed market indicators near their historical peaks, despite the complexities of the problems facing the global economy as a whole

Sixth ... Gifts of hope for the emerging markets came from China and the World Bank, as China's exports declined by 4.4% in December 2018 and also the expectations of the World Bank for the economy. ..