Emerging Market Shocks and Rebounds

Emerging markets also tend to bounce back sharply after major market declines. This phenomenon is similar to developed markets where dramatic falls are followed by strong recoveries in the following months and years. The table below shows some large emerging market crashes and the ensuing rebounds: Click to enlarge Source: Emerging-Market Resilience, Franklin Templeton Emerging markets …

Continue reading ‘Emerging Market Shocks and Rebounds’ »

Tech Sector Dominates Emerging Equity Markets

Tech stocks have become a major sector in emerging markets. Up until now emerging markets have generally been known for commodities, consumer goods, manufacturing and financials. That is no longer the case as tech companies in emerging countries are growing faster, getting more innovative and in some cases beating their developed market peers. In the …

Continue reading ‘Tech Sector Dominates Emerging Equity Markets’ »

Two Reasons To Invest In Emerging Market Stocks

Investing in emerging market equities offers many benefits. Two of the key reasons to invest in them are diversification benefits and higher returns. 1.Diversification Benefits: The diversification benefits of owning emerging stocks is significant. Equity markets of developing countries have low co-relation to developed countries. The chart below shows the real benefits of emerging stocks. …

Continue reading ‘Two Reasons To Invest In Emerging Market Stocks’ »

On The Long-Term Performance Of Pakistan Stock Market

Pakistan used to a frontier market according to MSCI classification. However on June 1, 2017 the index provider reclassified the country as an emerging market and now the country is a constituent of the MSCI Emerging Markets Index. I recently came across an article in the BBC that discussed the story of Mattias Martinsson’s investment adventures …

Continue reading ‘On The Long-Term Performance Of Pakistan Stock Market’ »

Review: The MSCI Emerging Markets Index

One of the easiest and simplest ways to gain exposure to emerging market equities is via an ETF. Some of the world’s top emerging market ETFs benchmark to the MSCI Emerging Markets Index offered by the index provider MSCI. In fact, according to MSCI over $1.5 Trillion in assets are benchmarked to this index. The MSCI Emerging Markets …

Continue reading ‘Review: The MSCI Emerging Markets Index’ »

Four Economic Drivers of Different Emerging Market Equities: Infographic

Emerging market stocks are in vogue again in recent months. After abandoning these markets in the past few years global investors are slowly returning back to them in order to profit from higher growth potential than in developed markets. It is important to note however that not all emerging markets are driven by similar forces. …

Continue reading ‘Four Economic Drivers of Different Emerging Market Equities: Infographic’ »