EM/DM Relative Performance vs. U.S. Dollar The strength of the U.S. dollar can affect the relative performance of EM/DM equities. A weak U.S. dollar has historically led to outperformance of emerging market equities. Image: BofA Global Investment Strategy
Distressed EM Bonds Distressed emerging market corporate bonds are trading at the Lehman/GFC lows. Image: BofA Global Investment Strategy
10-Year Government Real Bond Yield Some emerging markets still have positive 10-year government real bond yields. Image: Alpine Macro
Performance – MSCI EM/S&P 500 Why are emerging market equities underperforming the S&P 500 for so long? Image: The Daily Shot
EM vs. DM Valuation Emerging market equities look attractive relative to developed market equities. Image: Goldman Sachs Global Investment Research
Performance – What Asset Class Do You Think Will Outperform in 2021? FMS investors expect emerging markets, the S&P 500 and oil to outperform in 2021. Image: BofA Global Fund Manager Survey
Equity Prices – EM Relative to DM vs. Gold Prices Is the relative performance of emerging market equities vs. developed market equities at a major market turning point? Image: BCA Research
Top 5 Largest Constituents as Percent of Market Capitalization This charts highlights the extreme concentration of market cap in the U.S. and global emerging markets in the top five stocks. Image: Credit Suisse Research
The SARS Analog – Virus Outbreaks and Global Markets The chart shows the SARS analog (2002 vs. 2020), highlighting the S&P 500 Index, the MSCI China Index, emerging markets vs. U.S. EPS and the CRB Raw Industrials Index. Image: Fidelity Investments
World Economy – Industry as Share of Total GDP Industry represented 25% of the world’s GDP in 2018, and a larger percentage of GDP in emerging countries than in developed countries. Image: howmuch.net
China: Chinese Firms Reliance on USD-denominated Debt Chinese firms reliance on USD-denominated debt is lower than other emerging markets. But a weakened yuan would hurt Chinese firms. Image: Institute of International Finance