Why Invest In Emerging Market Bank Stocks

Emerging market banks offer distinct advantages over their developed world peers. Other than the obvious diversification benefits, banks in the developing countries tend to have higher growth and profitability rates leading to much better share price appreciations. For instance, in most developing markets a few banks dominate the industry and hence have higher pricing power. …

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August Is The Worst Month For Emerging Market Equities

Many emerging market stocks have performed poorly so far this year. After a strong run until last year, emerging markets have declined this year due to a multitude of factors including rising oil prices, impact of trade war initiated by the US, rising US dollar, etc. Hence some of the major markets of the developing …

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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 …

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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 …

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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. …

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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 …

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