(Strongly) emerging markets

Invest in some of the globe’s most significant opportunities

28 Jan 2020

Key takeaways

  • Emerging market (EM) countries make up 70% of global GDP growth.
  • EMs consume most of the world’s oil and copper, buy more cars and are exposed to the biggest secular trends in the decade ahead.
  • Wealth in EMs is also growing rapidly, with emerging markets minting billionaires three times faster than developed countries since 2000.
  • We think that emerging markets currently offer some of the most attractive investment opportunities globally.

There was a time—between 2014 and 2019 to be precise—when emerging market (EM) growth was lagging. In fact, last year, EM stocks gained less than 19% vs. 32% for the S&P 500. However, the tide is turning. Our researchers now believe EMs are set to outpace growth in all other regions around the world.

In fact, EMs are expected to grow at a faster pace than developed markets (DMs). They are also currently valued lower than DMs and have the advantage of being more exposed to technology, financials and Asia. This puts EMs in an even stronger position to benefit from the decade’s biggest trends, like water scarcity and digital transformation.

Our research partners continue to prefer EM stocks over other regional stock markets such as the US and the Eurozone. Specifically, they recommend EM stocks in China, Brazil and India.

For more specific opportunities in EMs and beyond, join us for the UBS House View live conversation on Thursday, February 6, at 1 p.m. ET.*

3 ways to get the insights

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Code: 46502#

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Join CIO’s live UBS House View conversation on the first Thursday of every month at 1 p.m. ET (10 a.m. PT). 

For more, read the latest UBS House View.

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