Emerging Market Equities: Breakout!
Seems like Bank Credit Analyst thinks that we ain’t high enough!
1:43:00, April 17, 2007
Emerging market (EM) equities have broken to the upside in recent trading days relative to the global benchmark. Further gains are likely in the months ahead.
Our Emerging Market Strategy service highlighted that many EM currencies are likely to appreciate further against the U.S. dollar, which will help bring down EM bond yields. In turn, this provides a bullish equity environment. Lower interest rates will further stimulate domestic demand, benefiting domestically oriented sectors and helping encourage P/E multiple expansion. Emerging market banks tend to perform particularly well during times of a falling U.S. dollar, and banks in Asia and Eastern Europe currently appear attractive. We also like stock markets in Taiwan, Korea, Thailand and Brazil.
Related posts:
- Emerging Market Fund flows out the highest
- Emerging mkts performance
- Marc Faber:Emerging Markets Outlook Is Optimistic
- Mark Mobius Sees Commodites Correction, Not End Of Boom
- Long Term Market Analysis: Equities Toppish, Gold and Silver Bull! $GDX $SPY $SLV
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