,Singapore
1 view

5 reasons why you should be bullish on emerging markets

Valuations are quite attractive.

Bank of America Merrill Lynch noted five reasons why investors should remain tactically bullish on emerging marktes (EMs).

Here's more:

1) Valuations are attractive. Our analysis comparing PB with ROE less COE suggests emerging markets (EMs) are 20% undervalued. Large sectors in bigger markets look particularly undervalued, most with a "state capitalism" discount. Potential reforms from these governments could unlock this discount.

2) Sentiment is sour, as the BofAML Fund Manager Survey and our marketing trips indicate.

3) The EM growth cycle is picking up, as highlighted by the GLOBALcycle (Alberto Ades) and Global Wave (Nigel Tupper).

4) Tactical China indicators are bullish: China economic surprises, Shanghai property stocks, Shenzen small/mid-cap stocks, fine wine prices and China's EPS revisions, are all stable/rising. 5) Asia's terms of trade are rising, presaging improving EBIT margin growth. 

Get Investment Asia in your inbox
Since you're here...

...there are many ways you can work with us to advertise your company and connect to your customers. Our team can help you dight and create an advertising campaign, in print and digital, on this website and in print magazine.

We can also organize a real life or digital event for you and find thought leader speakers as well as industry leaders, who could be your potential partners, to join the event. We also run some awards programmes which give you an opportunity to be recognized for your achievements during the year and you can join this as a participant or a sponsor.

Let us help you drive your business forward with a good partnership!

The Lion City also has the highest insurance penetration amongst the six markets at 5.9%.
On back of a modest increase in US interest rates.
As Asian hedge funds outperformed peers.
Lousy start for 2014, says analyst.
Santa is on his sleigh and the elves won't be back until Jan 6.