The Indian equity market is on fire with the benchmark BSE Sensex index reaching a new record high yesterday. The index rose 352 points or 0.95% to reach 37,336. Sustained capital inflows and India’s insulated economy from the impacts of Trump’s trade wars are fueling the surge in stocks. In dollar terms, the Sensex is up …
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The three largest index providers in the world are S&P DJI, MSCI, and FTSE Russell. For emerging markets, the MSCI Emerging Markets Index is the most popular and widely used benchmark globally. Though MSCI and S&P indices are similar there are significant differences between the indices offered by these companies. It is important to understand these …
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Emerging equity markets outperformed developed markets until a few years ago. Since then emerging equities have lost their shine and now their developed peers are outperforming them as the chart below shows: Click to enlarge Source: Econosights – Should we worry about emerging markets?, AMP Capital
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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Single country funds are highly risky especially those related to emerging markets. Holding these funds for the long-term defined as five years or more requires strong conviction and patience and there is no guarantee that the bet would be a winner. I recently came across an article that discussed the risks and benefits of investing …
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