According to the publication, investors have also pointed to the low valuations that some emerging market assets have as an advantage, especially at a time when many consider US stocks to be overvalued.
On 27 January, the MSCI Emerging Markets index traded at 16 times expected earnings (over the next 12 months), according to
Bloomberg. In comparison, the S&P 500 had a PE ratio of 22 times on the same day.
Sustainable gains across the board
The iShares MSCI Emerging Markets ETF [EEM], which is considered to offer the broadest exposure to emerging markets, has gained 11.06% in 2021 so far (through 11 February’s close). The iShares ESG Aware MSCI EM ETF [ESGE], which focuses on more sustainable companies, has gained 11.23% in the same period, while the Goldman Sachs ActiveBeta Emerging Markets Equity ETF [GEM] has grown 9.27%.
The coup in Myanmar, coupled with the country’s stalled financial-market opening, means global funds have little choice but to avoid the nation, money managers say.
Myanmar Coup Risks Making Nation ‘Uninvestible’ Some Funds Warn
Bloomberg 2/11/2021 Livia Yap and Khine Lin Kyaw
(Bloomberg) The coup in Myanmar coupled with the country’s stalled financial-market opening means global funds have little choice but to avoid the nation, money managers say.
The army’s seizure of power last week has led to street protests and condemnation from governments around the world, discouraging overseas investors who are increasingly basing their decisions on environmental, social and governance standards. At the same time, plans to establish a market for corporate bonds and an additional listing option for companies have been on hold since the onset of the coronavirus.
Posted on January 27th, 2021
Livia Yap, Courtesy Bloomberg News
BC-The-World’s-Best-Stock-Rally-Is-in-Sri-Lanka , Livia Yap
(Bloomberg) Sri Lanka stocks have returned a world-beating 30% so far in 2021 as domestic investors get more active.
Local individuals were responsible for 79% of total market turnover last year, according to the nation’s stock exchange, amid a 70% increase in new accounts from 2019. At the same time, overseas investors were exiting they sold $272.8 million of shares, data compiled by Bloomberg showed.
As the pandemic rebound got underway, abundance of global liquidity, substantial rate cuts and domestic retail participation have helped fuel the rally,” Joshua Crabb, a Hong Kong-based money manager at Robeco, said in an interview. Keep in mind the currency has also weakened, which makes exports more competitive, encourages tourism and introduces inflation, which helps nominal assets like equities.”