- "Many hard commodity prices are likely to suffer another leg down,” says Henry McVey, global head of macro and asset allocation at KKR. "We would view any recovery as a bounce, not a sustained re-acceleration in the Chinese economy, as the structural headwinds remain significant.”
- Concerned over high debt levels and weakening currencies, McVey warned investors last May to steer clear of emerging market companies just ahead of a 20% decline in the MSCI emerging market gauge over the following four months.
- "Looking at the big picture, our key conclusion from the trip [to Asia] is that the slowdown we are seeing in China is secular, not cyclical."
- Previously: Goldman still not a buyer of commodity rally (Oct. 12)
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