Morgan Stanley: Here's 10 Reasons Why Emerging Markets Will Continue To Crush Their Mature Peers

BRICs

In a new report, Morgan Stanley’s UK strategy team has reiterated its bullish stance on emerging markets.

Of course, emerging markets have been outperforming for years already, so there’s some question about whether this outperformance will continue.

MS’s view: despite the strong run, they’re still cheap, and the fundamentals (GDP growth, population, etc.) are wildly bullish.

See why here >

First of all, emerging markets have had a very nice run

Source: Morgan Stanley

And return on equity has been superior to developed markets.

Source: Morgan Stanley

And yet EM stocks are still cheaper

Source: Morgan Stanley

Morgan Stanley's EM Index consists of 26 counties

Source: Morgan Stanley

The BRICs are trending very nicely.

Source: Morgan Stanley

The number of wealthy BRIC residents is set to explode.

Source: Morgan Stanley

Watch out America. EMs are going to kill it globally

Source: Morgan Stanley

Unlike Japan (or the US for that matter), BRICs don't have a debt problem.

Source: Morgan Stanley

The Swiss and Brits need to stop using their charge cards it seems

Source: Morgan Stanley

And as the pound gets weaker, EMs get stronger

Source: Morgan Stanley

...and in turn hurt UK holdings even more

Source: Morgan Stanley

Finally, here's the UK basket composition...

Source: Morgan Stanley

...versus the EM basket's composition. HUGE difference in make up!

Source: Morgan Stanley

Know everything about the BRICs? Well now it's time to meet the MAVINS

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