For more information please contact us

ashmail [at] ashmoregroup [dot] com (Email Ashmore)

Move over please!

Weekly investor research

06 May 2014

Much attention was paid to the expectation that China will overtake the US as the world’s largest economy this year, but the bigger story in our view is that Emerging Markets (EM) actually overtook developed economies as the largest share of global GDP already last year. This is clear from new IMF data released in April. Clearly, both investor perceptions about and allocations to EM continue to lag far behind EM’s rapid fundamental advances. This is true in both equities and fixed income, but especially in fixed income, where allocations by many investors lag weighting implied by simple GDP weighting by as much as ten times. This suggests that EM’s long-term technicals remain extremely strong.

Full article

Latest Insights

View all