Bank of America Merrill Lynch analysts have just published a fantastic map showing which major US listed companies are worth more than entire emerging market stock indices.
Take a look:
The authors offer this explanation of the “the journey from hubris to humiliation” that emerging market equities have undergone:
Back in late 2010, when Sepp Blatter announced that Russia & Qatar would follow Brazil as hosts of the FIFA World Cup, both China & India were on course for >10% GDP growth, EM spreads were significantly lower, and the market cap of EM ($US3.7 trillion on December 1st 2010) was twice the market cap of US banks, and exceeded the combined market cap of US tech & health care. Today, the market cap of EM equities is the same, while the combined market cap of US tech, health care and banks is over $US10 trillion.
While stocks in many advanced economies have surged, the MSCI EM index is still yet to return to its 2010 levels:
We’re not sure how Fifa got involved, but it’s a great map all the same.