Emerging Markets Rout Lures Contrarians Betting on Rate Cuts

Emerging markets are on track for their worst month since 2022. Asset managers TT International and AllianceBernstein are publicly adopting a buy-the-dip stance and making a bold wager to increase exposure to EM assets. Their positioning could create modest tactical inflows into EM, but is unlikely to reverse the broader risk-off environment immediately.

Analysis

Emerging markets are on track for their worst month since 2022. Asset managers TT International and AllianceBernstein are publicly adopting a buy-the-dip stance and making a bold wager to increase exposure to EM assets. Their positioning could create modest tactical inflows into EM, but is unlikely to reverse the broader risk-off environment immediately.