Emerging markets continue to lead the global stock markets higher. And American investors have caught on as well. They are pouring money into emerging market equity funds. By any measure, however the emerging markets continue to take both economic and equity market share from the developed markets. In their own unique ways the major developed markets like the US, Europe and Japan have major problems. Almost by default investors are forced to look to the emerging market opportunity. However faster economic growth does not necessarily mean higher equity market returns over the long run. In addition, there are some signs of froth in some emerging markets. In today’s screencast we note how the emerging market question will be an important one for investors for some time to come.
Posts mentioned in the above screencast:
Emerging market equities hit a 27-month high. (Carpe Diem)
American investors are pouring money into emerging market equity funds. (Money Game)
Are emerging markets the next great bubble? (Economist)
The ongoing shift towards the emerging markets in two charts. (FT Alphaville)
A new site dedicated to the emerging markets. (FT Tilt)
Weekly chart of the iShares MSCI Emerging Markets ETF (EEM). (Finviz)