Invesco Canada blog

Insights, commentary and investing expertise

Emerging from the shadows – the case for emerging markets

After an extended period of weakness, emerging market equities have rebounded nicely year-to-date – outperforming developed market stocks by a sizeable margin, as measured by the MSCI Emerging Markets Index and MSCI EAFE Index.1 In my view, this strong performance has been driven by better macroeconomic conditions, strong earnings growth and discounted valuations relative to developed market equities.1

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Is uncertain U.S. trade policy harming EM economies?


February 10, 2017
Subject | Active management | Institutional | Invesco | Macro views

Uncertainty about U.S. trade policy changes that could potentially harm emerging market economies dragged them down about 2.2% during the fourth quarter of 2016, underperforming developed international markets by about 3.5%.1 Yet emerging-market economies generally showed positive signs, with exports beginning to recover, commodity prices rebounding, and inflation remaining benign.

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Emerging-market shares gain ground


August 10, 2016
Subject | Active management | Macro views

Emerging markets delivered strong performance in the second quarter, driven by improved economic conditions and stabilized corporate earnings.1 The macro-level strengthening included lower inflation, stable commodity prices, improved current account balances and a reversal in currency depreciation. Assuming an accommodative monetary backdrop, emerging-markets gross domestic product (GDP) is expected to grow by roughly 4% this year and to accelerate in 2017 – the first acceleration in four years.2

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