Insightful Word
  • Investing
  • Stock
  • Economy
  • Politics
  • Investing
  • Stock
  • Economy
  • Politics
No Result
View All Result
Insightful Word
No Result
View All Result
Home Stock

EM stocks could surge. Here’s why

admin by admin
October 20, 2024
in Stock
0
EM stocks could surge. Here’s why
0
SHARES
6
VIEWS
Share on FacebookShare on Twitter

Investing.com — Emerging market equities are primed for a strong rally, according to a recent note from Alpine Macro. 

Several key factors, including a cyclical profit upswing, policy easing, and undervaluation, are aligning to create a favorable environment for EM stocks to outperform their developed market counterparts, according to the firm.

Alpine Macro points to improving global manufacturing and increased capital spending in non-tech Asian economies as critical drivers of the expected profit recovery. 

Additionally, EM central banks are moving toward further monetary easing, which should provide additional tailwinds. 

“EM firms’ profits are poised for a strong cyclical rebound, underpinned by an upswing in global manufacturing, further EM monetary policy easing, and accelerating capital spending in non-tech Asian economies,” Alpine Macro states.

China’s recent shift toward fiscal stimulus is said to add to the bullish case. 

“Chinese policymakers are in the early stages of a reflationary push, with more fiscal measures likely on the way,” adds the firm. 

They believe that aggressive stimulus measures could lift earnings not only for Chinese firms but also for companies across the broader EM landscape.

Furthermore, Alpine says that EM equities are currently undervalued, which provides a solid foundation for outperformance in dollar terms.

“EM equities and currencies are markedly undervalued, providing a solid foundation for dollar-based outperformance against DM ex-U.S. stocks,” Alpine explains. 

However, the extent of this rally will depend on how far China is willing to go with its fiscal efforts. “Return upside will be dependent on how thoroughly China adopts a ‘whatever it takes’ approach on reflation.”

Alpine Macro argues that the relative performance of EM stocks is already improving. 

“EM relative equity performance is turning a corner,” the analysts write, highlighting the positive momentum since last year. With the right conditions in place, Alpine recommends maintaining at least neutral exposure to EM stocks while preparing to go overweight as conditions evolve.

 

This post appeared first on investing.com

Previous Post

Can the ongoing Q3 season derail AI growth story?

Next Post

How Taylor Swift’s merch could give Target an edge over Costco

admin

admin

Next Post
How Taylor Swift’s merch could give Target an edge over Costco

How Taylor Swift’s merch could give Target an edge over Costco

Trending News

Why does Elon Musk want to buy MSNBC? And can he pull it off?

Why does Elon Musk want to buy MSNBC? And can he pull it off?

November 26, 2024
Earnings call: Conagra Brands navigates hurdles, maintains fiscal 2025 goals

Earnings call: Conagra Brands navigates hurdles, maintains fiscal 2025 goals

October 3, 2024
United Airlines to bring Musk’s Starlink on flights by spring

United Airlines to bring Musk’s Starlink on flights by spring

January 5, 2025
Subscribe to Insightful Word


    Recent News

    ARB eyes recovery as Arbitrum taps agentic DeFi revolution with $1M grant

    ARB eyes recovery as Arbitrum taps agentic DeFi revolution with $1M grant

    June 5, 2025
    Ripple releases $2.18B in XRP, price dips 2%

    Ripple releases $2.18B in XRP, price dips 2%

    June 5, 2025
    Nintendo Switch 2 launch sees shortages as 2.2M vie for units in Japan

    Nintendo Switch 2 launch sees shortages as 2.2M vie for units in Japan

    June 5, 2025
    Why Bank of America sees 13% upside on Roblox (RBLX)

    Why Bank of America sees 13% upside on Roblox (RBLX)

    June 5, 2025

    Recent News

    ARB eyes recovery as Arbitrum taps agentic DeFi revolution with $1M grant

    ARB eyes recovery as Arbitrum taps agentic DeFi revolution with $1M grant

    June 5, 2025
    Ripple releases $2.18B in XRP, price dips 2%

    Ripple releases $2.18B in XRP, price dips 2%

    June 5, 2025

    Latest News

    • ARB eyes recovery as Arbitrum taps agentic DeFi revolution with $1M grant
    • Ripple releases $2.18B in XRP, price dips 2%
    • Nintendo Switch 2 launch sees shortages as 2.2M vie for units in Japan

    About Insightful Word

    • Contacts
    • Cookie Notice
    • Privacy Policy
    • Terms of Service
    • Trading tools
    • Contacts
    • Cookie Notice
    • Privacy Policy
    • Terms of Service
    • Trading tools

    Copyright © 2025 Insightfulword.com. All Rights Reserved.

    No Result
    View All Result
    • Investing
    • Stock
    • Economy
    • Politics

    Copyright © 2025 Insightfulword.com. All Rights Reserved.