Valuation Gap Between U.S. and Emerging Markets ex-China According to BofA, emerging markets ex-China benefit from favorable demographics, modernization potential, and attractive valuations for the long term. Image: BofA Global Research
MSCI Emerging Markets Relative to the U.S. and U.S. Dollar Historically, a weak U.S. dollar tends to be good for emerging markets. Image: Datastream, J.P. Morgan
Emerging Market Price-to-Book and Subsequent 5-Year Returns This chart shows the correlation between EM price-to-book and subsequent 5-year returns, suggesting higher returns for emerging markets. Image: J.P. Morgan
Gold and Emerging Market Currency Index Historically, a weak U.S. dollar tends to be good for gold and emerging markets. Image: Gavekal, Macrobond
Emerging Markets Exports Value and MSCI Emerging Markets 12m Trailing EPS Chart suggesting that EM corporate profits are linked to the global trade cycle. Image: Gavekal, Macrobond
G4 Central Bank QE and Emerging Markets Equities This chart suggests that G4 central bank stimulus would support emerging markets equities in 2020 (R = 0.94 since 2016). Image: BofA Global Research
Major Central Bank Balance Sheets and Emerging Market Equities Chart suggesting that the growth in G3 central bank balance sheets is positive for emerging market equities. Image: Oxford Economics
Developed and Major Emerging Markets Growth Forecast Chart suggesting that growth in developed and major emerging markets should improve in 2020. Image: Deutsche Bank Global Research
Inflows to Emerging Market Equity Funds Investors are back into emerging markets equities. This is the biggest 4-week inflows to emerging market equity funds since January 2019. Image: BofA Merrill Lynch Global Research
Central Banks Main Policy Rate and Balance Sheet – Advanced Economies vs. Emerging Markets Many central banks are running low on ammunition to fight the next downturn, after a decade of cheap money. Image: BofA Merrill Lynch Global Research