Vontobel’s Quality Growth Boutique believes prosperous times are ahead for emerging markets and they will blossom again, much like a lotus that reemerges each day from beneath the water’s surface. This paper looks at the opportunity emerging markets offer investors to participate in an enduring growth story.
Topics discussed include:
- How the state of consumption growth in emerging markets, driven by the rising middle class, remains intact.
- Why many EM countries today are more resilient to external shocks than in the past and can better withstand the pressures of a stronger U.S. dollar.
- How the fairly conservative use of stimulus by many emerging markets in response to the COVID-19 pandemic could lead to a lower financial burden over the long term.
- The attractive valuations of emerging market equities. The MSCI Emerging Markets Index is trading at a 15-year low compared to the MSCI World (Developed) Index.