International Finance: Forget Blue Chips, Emerging Market Small Caps Are Kings This Year

The MSCI Emerging Markets Small Cap Index is up 18% so far this year, outperforming the broader gauge by 17 percentage points, as investors bet on stocks most exposed to a post-pandemic recovery. In developed markets, small cap shares are little changed against the broader market this year and have underperformed since March.

Cheap valuations and a bias toward economically-sensitive sectors are why investors in developing country markets are choosing to bet on small, according to Manishi Raychaudhuri, BNP Paribas SA’s head of APAC equity research. “Cyclicals -– particularly commodities — have largely led earnings estimate upgrades since early 2021,” Raychaudhuri said. “In early 2021, the EM small cap index was significantly cheaper than the MSCI Emerging Markets Index, and it still remains cheaper.”

Still, the outperformance of EM smallcaps is expected to slow down in the medium term, said Raychaudhuri. “During the initial phases of Federal Reserve’s monetary policy normalization, EM stocks usually underperform and the high beta smallcap stocks could underperform more than the frontline large caps,” he said.

I'm bless the day i invested in your platform because since then i have achieved greatness LindaStouffes

United States United States Latest News, United States United States Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

International Finance: U.S. 30-Year Yield Surges After Poor Auction in Wake of CPIGlobal bond yields are surging after a bigger-than-expected jump in U.S. inflation revived concerns that central banks will be forced to start raising interest rates sooner than traders anticipate.
Source: dailymaverick - 🏆 3. / 84 Read more »

International Finance: Elon Musk Sells $1.1 Billion of Tesla Stock To Cover TaxesTesla Inc. Chief Executive Officer Elon Musk unloaded stock in the electric car-maker, shortly after holding a poll on Twitter over whether he should sell 10% of his massive stake in the company. Last night we slept hungry again and my daughter was crying because of hunger. Please assist us with a 2kg mealie meal and tinned fish 🙏🏻. Just so my little girl can eat😔💔. I've been struggling to get a job and in my struggle, my child is suffering💔 So he should have enough left to do the same again for another 250 years.
Source: dailymaverick - 🏆 3. / 84 Read more »

International Finance: Musk Throws Fresh Shade at Rivian a Day After Rival’s Big IPOElon Musk doesn’t exactly sound optimistic about the prospects of Rivian Automotive Inc., even after the rival electric-vehicle maker’s blockbuster IP0.
Source: dailymaverick - 🏆 3. / 84 Read more »