NEW YORK (TheStreet) -- Emerging markets are generally expected to perform poorly whether Democratic candidate Hillary Clinton or Republican candidate Donald Trump wins the U.S. presidential election today, Deltec CIO Atul Lele said on CNBC's "Halftime Report" on Tuesday afternoon.
"I think selected emerging markets can actually do quite well in this environment where you've seen structure reform. But generally, we're going to see a return to people focusing back on what's really driving markets. That's U.S. dollar liquidity conditions," he said.
The firm believes the Fed will hike interest rates at its December meeting, which drives emerging markets down, he noted. "Because when interest rates move up, it's basically U.S. dollar liquidity - which a lot of emerging markets rely on - being pulled out of global markets."
Emerging markets have largely been relying on "cheap U.S. dollars" flowing straight into them for the better part of 15 years, Lele said.
When deciding which selected emerging markets will do well, "it's really about country allocation" because, in general, "they're going to be under pressure as that liquidity comes out of the system."
For example, a number of emerging markets that rely on China will "come back in a big way" next year. That's because that country is moving toward "tightening and that fiscal easing is really starting to fade," after it went through "the biggest fiscal and monetary expansion package ever in the history of the world" over the past year, Lele said.