Should You Hold Emerging Market Stocks For The Long-Term ?

Emerging market equities can offer substantially higher returns than developed equities due to many reasons. For instance, the economies of developing countries grow much higher and faster than developed countries.While firms in the developed world may struggle to grow their market share in the domestic market companies in the emerging world may continue to expand …

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Emerging Markets: Companies Showing Signs Of Recovery ?

Emerging markets are performing well so far this year. But until last year they were depressed as investors avoided them for a variety of reasons including the plunge in commodity prices. According to an article at Franklin Templeton, these markets are showing signs of recovery ass earnings, exports and commodity prices are on the upswing. …

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Emerging vs. Devloped Markets 12-Month Foward EPS Growth: Chart

Emerging equity markets have performed well so far this year. After a few years of disappointing average to poor returns emerging stocks are projected to have good growth potential this year. For example, commodities such as copper prices are rising due to rising demand. Some of the emerging markets’ year-to-date returns are listed below: China’s Shanghai …

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Composition of MSCI Emerging Markets Index 2008 vs. 2016

The widely used benchmark for emerging markets from provider MSCI has changed substantially in recent years. As emerging markets evolve the index weightings changes accordingly. The graphic below shows the comparison of country and sector weights of the MSCI Emerging Markets Index in 2008 and 2016: Click to enlarge Source: Active Viewpoint: Global Emerging Markets, Martin Currie …

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GDP Per Capita: Emerging vs. Developed Markets

Emerging markets such Brazil, China, India, Russia,etc. have had overall strong economic growth in the past few decades.However despite the tremendous increase in the standard of living in these and other emerging countries, the GDP per Capita is still far lower than those of developed countries. Click to enlarge Source: Emerging-Market Equity 2017 Outlook, Franklin Templeton Investments …

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Emerging vs. Developed Market Total Returns Since 1987

Emerging markets have outperformed developed markets this year. As of  Sept 9, the MSCI Emerging Markets Index is up 14.5% while the MSCI World Index is up 2.7% according to an article by investment guru Mark Mobius. The MSCI World index is a proxy for developed markets. The following chart shows the total return of Emerging vs. Developed …

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