Causal link between growth and equity returns should not be taken at face value
If you want economic expansion, you will find it in emerging markets but if you want earnings growth, you will find it in developed markets
10 June 2019 - 05:06
Investment manager and author Mebane Faber recently argued for “investing entirely in emerging markets (EMs) for the long haul”, reasoning that the endemic features of these markets make a compelling case for the long run.
EMs are home to large and growing populations that drive household and business spending. As many as 6.4-billion people, or 86% of the world’s population, live in EM countries. China and India alone are home to 37% of the world’s population, and by 2030 the World Bank estimates that as many as one in five consumers will live in Africa...
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