After starting the year wobbly, emerging markets have made a big comeback.Citi Strategist Geoffrey Dennis identifies 6 reasons this can continue:
The key for us is the global economy, which has been recovering for less than two years. Assuming these events do not turn global growth negative again, investors should buy. Supports include: i) strong EM growth; ii) ongoing liquidity support from the Fed; iii) the approach of the rate peak in key EMs; iv) solid earnings momentum; iv) below-average valuations; and vi) a low cost of capital.
There ya go…
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