International HIGH-GROWTH EMERGING ECONOMIES

Discussion in 'Shares & Funds' started by Nodrog, 19th Oct, 2018.

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  1. Nodrog

    Nodrog Well-Known Member

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    Some light bedtime reading. I only skimmed a little of this comprehensive report but thought it might be of interest to someone. If nothing else it could help with the decision of which EM ETF to hold eg Asia (VAE) vs EM in Total (VGE)? That said, we as retirees, have chosen not to hold any EM. But if I was to invest in EM it would likely be VAE.

    https://www.mckinsey.com/~/media/mc...-outperformers-full-report-sep-2018.ashx//url

    Eighteen emerging economies sustained long-term GDP per capita growth, outperforming their peers.

    17A50CA1-C447-4E6E-BF91-F52AE5BFBB44.jpeg
     
  2. Chris Au

    Chris Au Well-Known Member

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    Based on the below, any ETF that includes China, and if China is a larger proportion of the ETF, will do well

    upload_2018-10-19_8-46-31.png
     
  3. Chris Au

    Chris Au Well-Known Member

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    I'm interested that China wasn't regarded as a high income economy, but when you take the whole economy/population into account (incl regional/farming components), possibly not
    (below is footnote to Nodrog's image)

    upload_2018-10-19_8-55-49.png
     
  4. Rolf Latham

    Rolf Latham Inciteful (sic) Staff Member Business Plus Member

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    Indo is an animal to itself - huge growth
    ta
    rolf
     
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  5. Chris Au

    Chris Au Well-Known Member

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    What do you see as driving this?? Emerging opportunities? Stable government/foundations?
     
  6. Redwing

    Redwing Well-Known Member

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    From Star Capital

    GLOBAL STOCK MARKET VALUATION RATIOS

    As the relative attractiveness of a market does not necessarily coincide with it's absolute valuation level, we calculate a fair value corridor for each market.

    Based on these Fair Values computed by the historical average valuation levels, the German stock market currently trades close to its fair value whereas Southern Europe and Emerging Markets are undervalued
     
    Anne11 likes this.

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