Institution: The slowdown of the US economy is reshaping the investment landscape, and emerging markets such as China are becoming "attractive investment destinations."

date
06/08/2025
Derrick Irwin, senior investment portfolio manager at Spobray Investment Management, said that the weak July job data in the United States indicates that the risk gap between US assets and emerging market assets is "narrowing". He believes that the US economy is slowing down, not only compared to emerging markets, but also in terms of its own growth momentum. The Federal Reserve is likely to initiate a rate cut cycle, putting pressure on the US dollar. The current US government has clearly indicated a preference for a weak dollar policy. The actual economic impact of tariffs on emerging markets is "more limited than imagined" because many US imports are still exempt from tariffs. Irwin believes that countries like China and other emerging markets are becoming "attractive investment destinations".