Threats Against Fed Independence Argues for Global Assets Diversification -- Market Talk

Dow Jones01-14

0659 GMT - Threats against the Federal Reserve's independence are a major risk and reinforce the case for global asset diversification, MFS Investment Management's Benoit Anne says in a note. "Most of the market volatility over the past few months has been caused by the U.S., so it makes sense from a risk management perspective to diversify exposures across regions, asset classes and currencies," the head of market insights group says. In particular, emerging markets are well positioned to offer that much-needed diversification, especially in the face of the downside risks to the dollar, Anne says. MFS IM's recent client meetings show that EM local debt is very much back on investors' radar, he says. (emese.bartha@wsj.com)

 

(END) Dow Jones Newswires

January 14, 2026 01:59 ET (06:59 GMT)

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