Managers warn emerging market volatility to continue in the short term

Gary Dugan, CIO of Merrill Lynch Global Wealth Management, explained that while, in the short term, inflation and liquidity remain a problem, the fall in commodity prices will allow governments in China, India, Russia and Brazil to reduce interest rates and stimulate consumer spending. However, Dugan argued that there is no urgency and, from an investor's point of view, it all depends what time period you are looking at. He said: "In the short term investors can buy UK, US or European equities - all of which have fallen heavily - and expect a return nicely above 10pc when markets reco...