Invest in Poorer Performing Emerging Markets for Better Gains? (CNBC)
Ruchir Sharma, the head of emerging markets at Morgan Stanley Investment Management, has told CNBC (Are emerging market underdogs the best bet?):
“If you invest those economies which have done very poorly over the last five years, the prospects of future return are the highest. If you invest in those economies which have done very well over the last five years, the prospect for future returns are limited.”
Based on that logic, Sharma says the best risk-reward is likely to be found in emerging markets in Eastern Europe because “sentiment is still so beaten down and yet the balance sheets are in much better shape and the economic recovery is taking place.” Hence, he’s positive on Poland, Romania, Greece and the Czech Republic, but keeping an underweight call on Russia.
Sharma also commented that over the last 20 or so years in emerging markets, equity markets “tend to outperform massively in the next 12-18 months after a new leader comes to power.” He further noted that Asia’s two best performers this year have been India and Indonesia, largely on expectations for political change.
To read the whole article, Are emerging market underdogs the best bet?, go to the website of CNBC.
- Which Emerging Markets Have the Most Leveraged Stocks? (Bloomberg)
- Fortune Magazine: Seven Emerging Markets to Invest in Now
- The 15 Most Miserable Emerging Market Economies (Bloomberg)
- How ECB QE Could Impact Emerging Markets (FT)
- Bloomberg’s Misery Index’s Most Miserable Emerging Markets
- The World in 2050 (PWC)
- 2017 Global Retail Development Index (ATKearney)
- Key Findings: Credit Suisse Emerging Markets Consumer Survey
- India and Indonesia are Better Positioned to Survive Rising Oil Prices (CNBC)
- Statistics on Swiss Franc Exposure in Central/Eastern Europe Lending (Reuters)