Emerging Markets vs. Developed Markets Emerging economies, despite their vast populations and potential for growth, have not yet achieved a corresponding level of representation in global equity markets. Image: BofA Global Investment Strategy
Ownership of Developed Markets Government Debt Most U.S. government debt is owned domestically, while foreign investors hold a smaller but still significant portion. Image: BofA Global Investment Strategy
Developed Market Core Inflation Rates Despite efforts to combat inflation through various monetary policies, core inflation rates remain high in many developed markets. Image: BofA Global Investment Strategy
Performance – U.S. vs. Developed Market (Ex-U.S.) Will developed market equities (ex-U.S.) continue to outperform U.S. equities? Image: BofA Global Investment Strategy
Developed Market Long-Only Flows Why do equity investors hit the sell button? Image: BofA Global Investment Strategy
Performance – U.S. vs. Developed Market Equities ex-U.S. Price Relative How long will U.S. equities continue to outperform the rest of the world? Image: BofA Global Investment Strategy
Emerging Markets vs. Developed Markets Growth Differential The growth cycle usually drives emerging markets. Image: Goldman Sachs Global Investment Research
Valuation – CAPE Ratio of Major Developed Market Equities U.S. equities are at significantly higher valuations than international equities. Image: Deutsche Bank
2020 Stimulus as % of GDP – Emerging Markets vs. Developed Markets The 2020 stimulus is massive, especially in developed markets Image: BofA Global Investment Strategy
Emerging Market Equities vs. Developed Markets Equities Emerging market equities have underperformed their developed market counterparts. Image: Credit Suisse Research