“In the search for equity opportunities, Emerging Markets may offer appealing valuations and exposure to long-term growth opportunities.”
- The latest market movements are indicating a broadening of the rally beyond developed markets.
- Better growth prospects and valuations in emerging markets (EM) are supporting this move.
- The case for long term EM investing is boosted by domestic consumption, rising incomes and exports.
The year to date performance of developed market (DM) equities including US has undoubtedly been strong, owing to resilient growth and positive sentiment around US tech.
However, in April, we saw a broadening of this rally to emerging markets (EM) with China posting positive performances and Indian equities continuing to deliver positive returns.
At a time of extreme valuations in some areas of Developed Market equities, EM equities may offer appealing valuations, positive growth premium compared to the developed world, exposure to domestic demand and long-term growth stories. The region remains divergent and calls for vigilance around country specific factors.
You can now read the full whitepaper at the link below
