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Illustration: Sarah Grillo/Axios

The expected gridlock in Washington and more monetary easing across the globe combined with a less antagonistic approach to countries like Mexico and China from President-elect Biden is getting asset managers excited about emerging markets again.

State of play: Fund managers at JPMorgan Asset Management say EM assets are in a “sweet spot” in the months ahead, especially bonds denominated in local currency.

  • “With the dollar depreciating in the coming quarters, EM local is one of our top trades,” Diana Amoa, who specializes in EM debt, told Bloomberg.
  • Limited fiscal spending suggests interest rates will remain lower for longer and an extended period of dollar weakness will boost bond prices and lure more investors as the desperate hunt for yield continues, she added.

Analysts are also bullish on equities.

  • "Emerging market (EM) assets should perform on improved trade sentiment, we believe, especially in Asia ex-Japan," strategists at the BlackRock Investment Institute said in a note to clients.
  • "Many Asian countries have contained the virus and are ahead in the economic restart."

Yes, but: Both JPMorgan and BlackRock strategists agree that the development of the virus and possible vaccine distribution will be deciding factors for the trade.

Go deeper

Dion Rabouin, author of Markets
Dec 1, 2020 - Economy & Business

Everyone's bullish

Illustration: Sarah Grillo/Axios

Following positive vaccine news and the run-up in global equities punctuated last week by the Dow hitting 30,000 points, investors are again throwing caution to the wind and growing more uniform in their bets that stocks will continue to rise.

Between the lines: The resurgence of traders' risk appetite has some urging caution, as unanimity in either excitement or fear historically has proven to be a contrarian signal for the stock market.

Amy Harder, author of Generate
Dec 1, 2020 - Energy & Environment

BlackRock unveils new way to assess climate investment risk

Illustration: Rebecca Zisser/Axios

Investors will be able to see what impact a warming world and the transition to cleaner energy sources could have on their portfolios in a tool BlackRock unveiled Tuesday.

Why it matters: The move by BlackRock, the world's biggest money manager, is one of the most concrete signs investors are getting more serious about acting on risks they’ve been saying for years they’re worried about.

16 mins ago - Health

U.S. exceeds 100,000 COVID-related hospitalizations for the first time

People wait outside the Emergency room of the Garfield Medical Center in Monterey Park, California on Dec 1. Photo: Frederic J. Brown/Getty Images

More than 100,200 Americans were hospitalized as of Wednesday due to the coronavirus for the first time since the outbreak began in early 2020, per the COVID Tracking Project.

The big picture: The milestone comes as health officials anticipated cases to surge due to holiday travel and gatherings. The impact of the holiday remains notable, as many states across the country are only reporting partial data.