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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Time to Rethink China’s Equity Markets

Plans for a new Shanghai-Hong Kong trading system are among three developments that we expect will give a boost to China’s equity markets in the medium to long term. So despite concern about the economic outlook, now could be the time to begin rethinking China from an investment perspective.

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Does Stock Picking Still Work in Emerging Markets?

Many things have changed in emerging markets (EMs) over the last two decades. Markets are more efficient than they used to be. But we believe that developing countries still provide fertile ground for finding stocks poised to outperform.

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Power Reform Shines a Light on Nigerian Stocks

By Henry D’Auria (pictured) and Christine Phillpotts Nigeria is Africa’s biggest economy and one of the world’s largest oil and gas producers. Resolving its electricity-generation gaps could significantly boost the country’s economic growth—and provide opportunities for equity investors.

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After the Beta Trade in Emerging Markets

Sammy Suzuki (pictured) and Morgan Harting It’s getting harder to generate equity returns in emerging markets (EMs). Simply chasing the index—the so-called beta trade—won’t do the job anymore. But with a more discriminating, active approach, we believe investors can still capture opportunities in the next phase of the EM growth evolution.

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Growing Older in Emerging Markets

The rapidly aging demographic in developing countries is an important market for consumer companies. For investors, it’s imperative to understand why complex socioeconomic changes will affect spending patterns in unfamiliar ways as emerging markets mature.

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In EM, Beware Commodity Riches Without Policy Smarts

By Fernando Losada (pictured) and Alexander Perjessy of AllianceBernstein (NYSE:AB) Fixed-income investors often divide emerging markets into commodity exporters and commodity importers. We think this overlooks an important reality: commodity wealth is not the sole—or even the most important—driver of EM performance.

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Cold Facts in Emerging Market Fridges

It’s not easy for investors to grasp the dynamics of consumer spending in diverse emerging markets. We think the best way is to look inside the refrigerators of people across the developing world.

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Asian Currencies to Stay Calm at Center of EM Storm

Emerging markets have fallen from favor, but does that mean investors should avoid them entirely? We don’t think so.

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Beyond the Emerging Middle Class

For many years, the rise of the middle class in emerging markets has captivated the imagination of investors. We think this is an illusion. It’s the working classes who will be the real engines of consumer growth in developing countries.

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