What is the average emerging markets return? (2024)

What is the average emerging markets return?

MSCI Emerging Markets Index Performance

As of December 2021, the MSC Emerging Markets Index recorded a one-year net return of -2.54%, a five-year annualized return of 9.87%, and a 10-year annualized return of 5.49%. Since its inception on Dec. 29, 2000, it has returned an annualized 8.97%.

What is the return of the emerging-market index?

MSCI Emerging Markets Index Performance

As of December 2021, the MSC Emerging Markets Index recorded a one-year net return of -2.54%, a five-year annualized return of 9.87%, and a 10-year annualized return of 5.49%. Since its inception on Dec. 29, 2000, it has returned an annualized 8.97%.

Are emerging markets a good investment now?

Following a sharp decline throughout 2021 and 2022, earnings growth expectations have moved higher for emerging markets compared to developed markets, including the United States (Exhibit 3). Within the standard MSCI EM Index, Asia leads all regions, followed by Europe, Middle East & Africa and Latin America.

Do emerging markets outperform?

No. Although emerging markets (EM) stocks typically outperform after the onset of Federal Reserve easing, we suspect this episode will be different. The growing chance of a US soft landing—coupled with sluggish growth expectations globally—suggest that cuts could be modest and that the US dollar will hold its value.

What percentage should I have in emerging markets?

In short, a review of the three standard approaches to EM allocation suggest global equity investors should allocate somewhere in the range of 13% to 39% to EM. Source: FactSet, MSCI, MSIM calculations.

Will emerging markets do well in 2024?

Consensus expectations call for a recovery in global earnings growth in 2024. Emerging market earnings growth is expected to accelerate to 18% in the year ahead, driven by South Korea and Taiwan. This represents a sharp recovery from the contraction in 2023.

Is the emerging markets index better than the S&P 500?

The MSCI Emerging Markets Index rose 9.9% in US-dollar terms in 2023, trailing far behind the S&P 500, which rallied by 26.3%. Last year's returns capped a decade of weak performance that cemented negative investor sentiment toward EM equities.

Do emerging markets do well in recession?

A declining dollar

If a US recession is on the way would only make more of a case for greater diversification in global portfolios – a positive for emerging markets. A recession would entail lower inflation and, as a result, lower US interest rates.

Will emerging markets outperform S&P 500?

Emerging markets will get a much-needed catalyst for improvement in 2024: central banks around the world pivoting to lower interest rates. For this year, the MSCI Emerging Markets index is on pace for another trouncing by the S&P 500 index—returning 5% to date, compared with a 26% gain for the S&P.

Why are emerging markets doing poorly?

The cause of this poor performance has a lot to do with China and its regulatory crackdowns on its global technology franchises, restrictions on debt restructuring among homebuilders and zero-COVID policy, which has produced rolling lockdowns and interrupted economic momentum.

What is the outlook for emerging markets in 2023?

The positive outlook for Emerging Market (EM) investments took a hit in 2023. Initially, investors were excited about the prospect of a stronger Chinese economy, a weaker US dollar, and lower expected interest rates. Unfortunately, these expectations didn't quite pan out, leading to lower returns.

What sectors will outperform in 2024?

Fortunately, analysts see positive earnings and revenue growth for all eleven market sectors this year. The healthcare sector is expected to generate a market-leading 17.8% earnings growth in 2024, while the information technology sector is expected to lead the way with 9.3% revenue growth.

What is the stock market forecast for 2024?

Wall Street analysts are expecting earnings to rebound in the first half of 2024, projecting a 4.6% increase in S&P 500 earnings in the first quarter and another 9.4% growth in the second quarter.

What stock will boom in 2024?

On Holding (NYSE: ONON), Roblox (NYSE: RBLX), and Uber Technologies (NYSE: UBER) are showing strong business growth that could deliver significant upside in the years to come, according to these Motley Fool contributors.

What is the outlook for emerging-market bonds?

We expect a favorable environment for emerging-market bonds in 2024, provided investors stay selective. Despite high interest rates, geopolitical instability and sluggish economic growth in China, emerging-market bonds posted strong returns in 2023.

Is emerging markets ETF a good investment?

The main benefit of investing in emerging markets is the potential for less correlated returns that can buoy a portfolio when U.S. or developed markets are lagging, along with favorable demographic tailwinds that could lead to higher-than-average future growth.

What is the best emerging market to invest in?

Based on current market conditions, we believe the best markets to invest in right now are emerging markets like India, Brazil, and Saudi Arabia, and Bitcoin. Below, we'll explore what's driving each of these markets and what makes them such strong opportunities for investment.

What index outperforms the S&P 500?

With a significant focus on high-performing sectors like Technology, Consumer Discretionary, and Health Care, the Nasdaq-100 has managed to outshine the S&P 500 by a considerable margin from December 31, 2007, to September 30, 2023.

Are emerging market funds high risk?

Emerging markets may have unstable, even volatile, governments. Political unrest can cause serious consequences to the economy and investors. Economic risk. These markets may often suffer from insufficient labor and raw materials, high inflation or deflation, unregulated markets and unsound monetary policies.

Is emerging markets a good investment for 2023?

With the exception of China, we expect growth to slow this year in emerging markets, given the lagged impact from past tightening and the likelihood of falling developed market goods demand for EM exports.

Will stock market recover in 2024?

While many analysts think the market could well climb in 2024, they're not fully discounting the possibility of a downturn either. As with the start of 2023, market watchers remain divided on the state of the market in the year ahead, as so many variables work to confound predictions.

Which markets will outperform in 2023?

2023 Winners

Chipmaker Nvidia skyrocketed 239% as demand for AI chips accelerated. Apple and Microsoft each had banner years after a dismal 2022. Overall, big tech stocks were responsible for a large share of the S&P 500's gains.

What is the best country to invest in 2023?

I n the following pages we present the Top Countries and Top Countries Per Capita in our annual Global Best to Invest rankings, topped by the United States, Canada and Germany in the first category and the United States, Canada and Ireland by the per-capita yardstick.

Which sectors outperform S&P?

The best performing Sector in the last 10 years is Information Technology, that granded a +20.60% annualized return. The worst is Energy, with a +4.01% annualized return in the last 10 years. The main S&P 500 Sectors can be easily replicated by ETFs.

What is the projection for emerging markets in 2030?

Over the course of the projections, Goldman Sachs Research expects EMs' share of global market cap will rise to around 35% by 2030 (50% for GDP), to 47% by 2050 (60% for GDP), and to 55% by 2075 (68% for GDP).

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