We’ve created a heat map of political uncertainty to highlight some emerging risks and opportunities across the globe. This map illustrates a notable trend: Developed markets are experiencing increasing political turmoil while emerging markets are seeing, broadly speaking, a more favorable political environment.

As you take a tour around the world below (red is negative, green is positive, and yellow is a warning sign), here are a few key insights:

  • Rising populism in developed markets has created varying degrees of political pressures and increased uncertainty in the U.K., Europe, and U.S. The U.K.’s vote to leave the European Union (Brexit) is a good example of the trend that is affecting developed markets.
  • Latin America is increasingly “green,” as we find that most of the region’s past decade’s populist governments are out of office and replaced by more business-friendly leaders. Brazil is the best example, with the downfall of President Dilma Rousseff, who is under corruption investigation and suspended from the presidency pending formal impeachment proceedings—replaced by a market-friendly administration under Vice President Michel Temer. There are also new administrations in Argentina and Peru that are pro-reform.
  • Asia has also seen a trend toward more pro-reform, pro-business political leadership, with India and Indonesia standing out.

One emerging market outlier—Turkey—is red given the recent deterioration of political institutions, which we expect will have a negative impact on the Turkish economy and weigh on the currency as well. However, we believe Turkey is a manageable risk as it accounts for less than 1.5% of the broad MSCI Emerging Markets Index.

2016-08-08_Infographic_Political-Turmoil_880x724_blog

RELATED POSTS

SUBSCRIBE NOW

Gain insights on macro market events, the economy, and investing strategies.
Receive our latest blog posts to your Inbox. Stay up to date and subscribe now.

SIGN UP

FOLLOW US

twitterfooteryoutubefooterfacebookfooter

RSS FEED

Please carefully consider the Funds’ investment objective, risks, charges, and expenses before investing. This and other information is contained in the Funds’ prospectus, which you may obtain by calling +1 800 742 7272. Read it carefully before you invest or send money. Investing includes the risk of loss.

Any statements or opinions expressed are those of the author as of the date of publication, are subject to change without notice as economic and markets conditions dictate, and may not reflect the opinions of other investment teams within William Blair Investment Management, LLC or the Investment Management Division of William Blair & Company, L.L.C.

This material is provided for informational purposes only and is not intended as investment advice or a recommendation to buy or sell a particular security. Any investment or strategy mentioned herein may not be suitable for every investor.

Factual information has been taken from sources we believe to be reliable, but its accuracy, completeness or interpretation cannot be guaranteed. Investments are subject to market risk. Forecasts, estimates, and certain information contained herein are based upon proprietary research and should not be interpreted as investment advice, as an offer or solicitation, nor as the purchase or sale of any financial instrument. Statements concerning financial market trends are based on current market conditions, which will fluctuate.

William Blair does not provide legal or tax advice. Please consult your tax and/or legal counsel for specific tax questions and concerns.

Distributed by William Blair & Company, L.L.C., member FINRA/SIPC.

Copyright © 2017 William Blair & Company, L.L.C. "William Blair” is a registered trademark of William Blair & Company, L.L.C. No part of this material may be reproduced in any form, or referred to in any other publication, without express written consent.

Statement of Financial Condition | NMS Rule 605 & 606 | Business Continuity Plan | UK Stewardship Code
Cookie Policy | Social Media Disclaimer | Privacy & Security | FINRA’s BrokerCheck

FOLLOW US

twitterfooteryoutubefooterfacebookfooter

RSS FEED

Please carefully consider the Funds’ investment objective, risks, charges, and expenses before investing. This and other information is contained in the Funds’ prospectus, which you may obtain by calling +1 800 742 7272. Read it carefully before you invest or send money. Investing includes the risk of loss.

Any statements or opinions expressed are those of the author as of the date of publication, are subject to change without notice as economic and markets conditions dictate, and may not reflect the opinions of other investment teams within William Blair Investment Management, LLC or the Investment Management Division of William Blair & Company, L.L.C.

This material is provided for informational purposes only and is not intended as investment advice or a recommendation to buy or sell a particular security. Any investment or strategy mentioned herein may not be suitable for every investor.

Factual information has been taken from sources we believe to be reliable, but its accuracy, completeness or interpretation cannot be guaranteed. Investments are subject to market risk. Forecasts, estimates, and certain information contained herein are based upon proprietary research and should not be interpreted as investment advice, as an offer or solicitation, nor as the purchase or sale of any financial instrument. Statements concerning financial market trends are based on current market conditions, which will fluctuate.

William Blair does not provide legal or tax advice. Please consult your tax and/or legal counsel for specific tax questions and concerns.

Distributed by William Blair & Company, L.L.C., member FINRA/SIPC.

Copyright © 2017 William Blair & Company, L.L.C. "William Blair” is a registered trademark of William Blair & Company, L.L.C. No part of this material may be reproduced in any form, or referred to in any other publication, without express written consent.

Statement of Financial Condition | NMS Rule 605 & 606 | Business Continuity Plan | UK Stewardship Code
Cookie Policy | Social Media Disclaimer | Privacy & Security | FINRA’s BrokerCheck

Logo Header Menu

Subscribe Now

Gain insights on macro market events, the economy, and investing strategies.
Receive our latest blog posts in your Inbox. Stay up to date and subscribe now.

SIGN UP

Send this to friend