Emerging Markets Stocks And ETFs For 2021

There’s not a rigid definition of what an emerging market is. For example, China is still the leading country in many emerging market ETFs and funds. But is it fair to consider China an emerging market any longer? It has nearly 1.4 billion people and was the only major economy globally to see GDP growth in 2020.

That’s like calling Giannis Antetokounmpo an up and coming superstar despite winning the last two NBA MVP awards.

But even if I did see China as an emerging market, it wouldn’t be my top choice for 2021.

If you’ve been reading my newsletters, you know that I love emerging market exposure this year. The dollar is weakening and should continue to weaken with trillions more in stimulus and rising commodity prices.

Meanwhile, emerging markets are perfectly positioned to exploit this and grow as a result.

You also know that I’ve been talking about specific emerging markets like Taiwan, Thailand, and Russia.

But in this special emerging markets newsletter, I will aim to further talk about what to look for when investing in a country, what other emerging markets to consider, and why I think they are set to outperform the US markets this year, after many years of underperformance.

Why emerging markets?

For several reasons!

For one, did you know these facts about emerging markets? They have:

-85% of the world population

-77% of the landmass

-63% of global commodities

-59% of global GDP (using PPP)

-12.5% of the world’s market cap

Consider this for long-term investing too. Advanced economies are aging rapidly while emerging economies have youthful demographics.

That’s why PWC believes that emerging markets (E7) could grow around twice as fast as advanced economies (G7) on average.

For emerging markets, this could be very advantageous in the coming decades.

With American debt building up at an alarming rate, and the U.S. Dollar set for broader declines, this trend could begin sooner than we realize.

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Disclaimer: All essays, research, and information found above represent analyses and opinions of Matthew Levy, CFA and Sunshine Profits' associates only. As such, it may prove wrong and be ...

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