“Investors are pulling away whether it’s debt or equity markets, and that’s causing some of the decreases we’re seeing in emerging market indices,” Aguzin said. “The reality is, when we look at some of the underlying facts, they’re strong. The issues around trade are causing investor sentiment to be moving around.”

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Nevertheless, Aguzin still warned of further drawdowns in the emerging markets due to the prevailing negative sentiment and lingering shadow of trade barriers, especially with the Trump administration ramping up fresh tariffs on Chinese goods and China’s promise of a retaliation in response.

“It’s not going to be just valuation — when momentum is playing against the market, and sentiment is negative, those prices could continue to fall. I don’t think it’s enough in terms of just seeing a few indicators around valuations and saying this is getting to an attractive level,” Aguzin added.

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