While talking to CNBC in September, Ray Dalio said that investors should get “more defensive” in the stock market, and warned that stocks’ upside looks limited.
In 3Q17, the largest holdings of Bridgewater Associates were the Vanguard FTSE Emerging Markets ETF (VWO), the iShares MSCI Emerging Markets ETF (EEM), the SPDR S&P 500 ETF (SPY), the iShares Core MSCI Emerging Markets ETF (IEMG), and the SPDR Gold Trust ETF (GLD).
There are a lot of reasons behind the sharp rally in EMs (SCHE). The prominent reason is that the GDP growth in many of these nations has improved in the last few quarters partially on the back of the rise in commodity prices like copper and oil.
The rally in emerging markets (VWO) has mainly been driven by higher earnings growth on the back of an improved business environment, rising exports, and strengthening corporate balance sheets.
Manufacturing activity in July 2017 South Korean (EWY) manufacturing activity dropped in the July 2017, with a sharp reduction in output. The Nikkei South Korea (EEM) manufacturing PMI decreased to 49.1 from 50.1 in June, according to an IHS Markit report. Manufacturing activity in South Korea returned to contraction, with reduced orders for its key export markets, […]
Manufacturing activity in Indonesia In July 2017, manufacturing activity in Indonesia (EIDO) fell at the fastest pace in 19 months, mainly due to sharp decline in its output. Indonesia’S (EEM) manufacturing PMI (purchasing managers’ index) fell to 48.6, compared with 49.5 in June 2017, according to an IHS Markit report. New orders also fell in July […]
Uncertainty related to India’s new goods and services tax, which was implemented on July 1, 2017, seemed to affect India’s manufacturing activity in June 2017.
In the previous articles of this series, we discussed population and economic growth as the two major drivers leading to a rise in emerging markets (EMQQ).
The IMF noted that emerging markets and developing economies need to avoid being financially vulnerable and to ensure that growth won’t reverse course.
Those who recognized the upside potential in emerging market equities in early 2016 are likely already in the “hangover stage” of celebrating sizable YTD (year-to-date) returns.
Emerging markets are looking attractive. In July, after nearly a year, stocks hit the highest level after chances of an interest rate hike by the Fed abated to a large extent.
In the past three decades, emerging market (EEM) economies grew rapidly, led by exports, which shifted current account balances from a deficit to a huge surplus.
Recently, Latin America (ILF) had a strong performance. It’s slowly becoming a favored investment spot for global investors. Its valuations look attractive.
Even on the earnings yield basis, emerging markets look attractive with a yield of 8.4% compared to 6% for the S&P 500 and 6.7% for the MSCI EAFE Index.
Global equity markets (EFA) have been on a rollercoaster ride for the past few months. The sharp fall in stocks last year was initially triggered by fears of a hard landing in China (MCHI).
During the week ended January 8, 2016, emerging market equities saw total outflows of $387 million, compared to inflows of $540 million during the previous week.
India is part of the BRICS nations. Tracking their economic growth is important. They represent large and growing economies in five of the seven continents.
According to IMF data, India is the tenth largest economy in the world. It’s gross domestic product (or GDP) was $1.876 trillion in fiscal year 2013–2014.
