Morgan Stanley advising further cut to emerging market exposure

|By:, SA News Editor

"We don’t think it’s time to add back risk in emerging markets despite cheaper valuations and lighter positioning," says the team. "We recommend de-risking EM portfolios further and move to a bearish stance."

Overall, fundamentals are stable, says Morgan Stanley, but "vulnerabilities in one country" have a way of finding their way across the entire sector.

Source: Bloomberg

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