Emerging markets this year have been plagued by escalating trade tensions, a strong U.S. dollar, unstable oil prices, and rising interest rates. But all that may change soon, according to Eric Robertson, head of global macro strategy and FX research at Standard Chartered bank.
"The external vulnerabilities that have plagued emerging markets this year, like the higher U.S. rates and the Fed, and higher oil prices ... we think a lot of those have stabilized," Robertson told CNBC on Friday. "The trade backdrop is still difficult and the risks around U.S. and China are still in play, but we are cautiously optimistic."
Robertson expects the dollar to soften and long-term U.S. treasury yields to move lower next year, taking the pressure off countries with current account deficits. "I think that's an important factor for investors to consider," he said.