EM Valuations Monitor Will valuations help EM equities to outperform? While the comparatively low valuation of EM should ultimately stand them in good stead, we do not expect them to perform any better than their US counterparts this year. Fears of a bubble in the US... 31st March 2017 · 1 min read
EM Valuations Monitor EM equities stand out from the crowd Recent market movements have left the valuations of many assets looking stretched. But emerging market (EM) equities are an exception – their valuations still look low relative to those of EM bonds... 7th March 2017 · 1 min read
EM Valuations Monitor Bleak prospects for dollar-denominated bonds Emerging market (EM) dollar-denominated government bonds have made a decent start to the year, regaining some lost ground on their developed market counterparts. But we doubt that this strong... 26th January 2017 · 1 min read
EM Valuations Monitor Equities to find some comfort from low valuations Emerging market (EM) equities face a tricky year, as the Fed tightens policy, Donald Trump takes office and geo-political risks blot the outlook. But while these factors probably rule out a repeat of... 5th January 2017 · 1 min read
EM Valuations Monitor Valuations still favour EM equities over US$ bonds Yields of emerging market (EM) dollar-denominated bonds have risen since the US elections, but are still generally lower than the forward earnings yields of equities. This is one reason why we believe... 28th November 2016 · 1 min read
EM Valuations Monitor How will EM currencies react to Fed tightening? Emerging market (EM) currencies have been stable in recent months, even as the likelihood that the Fed will tighten policy in December has grown. This supports our view that EM currencies will take... 31st October 2016 · 1 min read
EM Valuations Monitor Valuations suggest “junk” bonds are still vulnerable Dollar-denominated non-investment government bonds have struggled in the past week and, with stripped spreads still low, we expect more tough times in the months ahead. 29th September 2016 · 1 min read
EM Valuations Monitor Have valuations of EM equities peaked? The rally in emerging market (EM) equities has fizzled out and, with measures of valuations such as the price/12month forward earnings ratio high, there may be only limited upside in the near term... 31st August 2016 · 1 min read
EM Valuations Monitor Further gains would not store up problems Further gains in emerging markets (EMs) seem likely as the Fed shies away from hiking rates again and other major central banks loosen monetary policy. But while that may cause some concerns that the... 4th August 2016 · 1 min read
EM Valuations Monitor Commodity currencies could make further gains The UK’s decision to leave the EU caused a momentary wobble in emerging market (EM) currencies, but many are now stronger against the US dollar than they were one month ago. Commodity currencies have... 6th July 2016 · 1 min read
EM Valuations Monitor Valuations could protect EM equities from the Fed While investors are still probably underestimating the future pace of monetary tightening in the US, we suspect that relatively low valuations will help to ensure that emerging market (EM) equities... 24th May 2016 · 1 min read
EM Valuations Monitor Has the rally in “junk” bonds gone too far? The strong performance of non-investment grade (or “junk”) dollar-denominated government bonds in recent weeks has driven the yield premium over investment grade bonds down to 360bp, a level rarely... 4th May 2016 · 1 min read
EM Valuations Monitor Will high valuations snuff out the rally in EM equities? The strong performance of emerging market (EM) equities in recent months has left their valuations high according to some measures, such as the price/12month forward earnings ratio. But we do not... 4th April 2016 · 1 min read
EM Valuations Monitor Is the pain over for EM currencies? Emerging markets (EM) currencies have enjoyed a renaissance in the past month and, although bumps are likely along the way, we suspect that many will appreciate further against the US dollar over the... 25th February 2016 · 1 min read
EM Valuations Monitor Has the sell-off in equities gone too far? There are signs that the collapse in emerging market (EM) equity prices, spurred by concerns that China’s economy is heading for a hard landing, has gone too far. We believe that China’s economy will... 2nd February 2016 · 1 min read
EM Valuations Monitor Valuations set stage for outperformance of EM equities Emerging market (EM) equities fared poorly in 2015, with the MSCI Emerging Markets Index falling by 8% in local currency terms and lagging behind the MSCI World Index of developed market equities for... 5th January 2016 · 1 min read
