EM stocks will catch up to US stocks in global market share by 2030: Goldman

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Emerging-market stocks will make up a bigger share of the global landscape than the US by next decade, Goldman says

Emerging-market stocks will take up a bigger share of the global stock market than the US by the next decade, according to estimates from Goldman Sachs.

The bank's economists predicted that emerging markets, which include nations like China and India, would make up 35% of the global stock market capitalization by 2030, 47% by 2050, and 55% of by 2075. Meanwhile, US stocks will make up 35% of global market cap in 2030, 27% in 2050, and just 22% by 2075.That doesn't necessarily translate to better stock performance in itself, though the bank generally expects emerging-market stocks to outperform developed-market stocks over the long-term, economists said in aThe shift will largely be driven by faster income growth in emerging countries, which will lead emerging economies to catch up and eventually oust the US in market share.

But that trajectory could be jeopardized by growing protectionism in emerging market nations, economists said, referring to policies such as those in China, which has

 

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