Russia entered the list of popular investor picks for emerging markets for 2017, Bloomberg writes.
For investors that borrow in currencies with low interest rates and buy high yielding ones, Russia’s ruble is a top bet.
UBS Group AG says the ruble’s carry trade could potentially return 26% over the next 12 months, the most among developing EMEA peers. Aside from having relatively high interest rates, Russia is benefiting from rising oil prices. That helps make its equity market an “obvious candidate” for NN Investment Partners.
South Africa, Mexico, Brazil, Chile, India and Indonesia also entered the top rating.
The top calls for this year are centered on markets where the political climate is improving and assets are less vulnerable to external shocks arising from higher US borrowing costs and President-elect Donald Trump’s policy announcements.
