GDP Leaves False Trail in Emerging Equities

Morgan C. Harting (pictured) and Nelson Yu Many investors in emerging markets (EMs) believe that identifying the fastest-growing economies is the key to finding higher returns. But while this approach has been effective in fixed-income investing, our research shows that it’s fairly useless for guiding country selection in developing-market equities.

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Seven Things to Consider About Emerging Markets Now

After several years of disappointing returns, emerging-market (EM) equities are regaining interest, attracting flows and outperforming their developed-market (DM) counterparts this year. For investors thinking about adding EM exposure, we offer seven factors to consider.

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Will Emerging Stocks Get a Developed-World Lift in 2014?

The failure of emerging economies to piggyback on the rich-world recovery this year is giving investors pause, despite enticing emerging-market (EM) valuations. But investors shouldn’t underestimate the power of this normally symbiotic relationship—or the upside potential in EM stocks next year on even a modest pickup in EM economic activity.

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Will Emerging-Market Stocks Close Gap with Global Equities?

Companies in emerging markets are more profitable and less debt burdened than their developed-market peers, and their shares trade at a deep discount. So when will emerging-market stocks close the gap with global equity markets?

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Will Emerging Market Earnings Rebound in 2013?

For two years, emerging markets companies have delivered inferior earnings growth and investment returns compared to peers in sluggish developed market economies. Now, the consensus is that earnings growth will catapult from near-zero in 2012 to 13 per cent in 2013. Hopes were high at the end of 2010 and 2011, too, yet analysts were then [...]

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If It’s All About Macro These Days, Why Haven’t EM Stocks Done Well?

It doesn’t seem to make sense. Superior macroeconomic fundamentals in emerging countries have not led to stronger—or even positive—equity returns over the last two years. Since the beginning of 2011, the unhedged return in US dollars of the MSCI Emerging Markets (EM) Index has been (10)%, while the MSCI World Index has delivered 6.5%. What’s [...]

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