Emerging Markets: A Growing Set Of Opportunities
With growth portfolios becoming increasingly focussed on China, investors may develop a tendency to overlook the broader emerging markets universe.
To shed a light on some lesser-known opportunities, this infographic from BlackRock explores the evolving landscapes of Southeast Asia, Brazil, and India.
Putting Opportunity Into Perspective
Emerging markets often exhibit lower price/earnings ratios (P/E) when compared to developed markets. While this may suggest that the region is attractively priced, investors can also view emerging markets from a relative size perspective.
Here’s how the market capitalizations of several emerging markets compare to some of the biggest names in tech.
Country | Total Country Market Cap (USD) | Comparable to | Company Market Cap (USD) |
---|---|---|---|
India | $2,111B | Apple | $1,981B |
Brazil | $711B | $746B | |
Thailand | $428B | Tesla | $401B |
Indonesia | $381B | Nvidia | $334B |
Philippines | $270B | Netflix | $221B |
As of September 2020. Source: CEIC, Ycharts
Investors often focus on tech companies when seeking long-term growth, but with valuations at their highest levels since the dot-com bubble, uncertainty could begin to rise.
That’s where emerging markets can come into play. A country such as Brazil, which contains over 400 listed companies, may offer enhanced returns and diversification when compared to a single company. To learn more, here’s a closer look at three emerging markets opportunities that might be flying under your radar.
1. Southeast Asia: A Rising Digital Economy
Southeast Asia (SEA), which includes Indonesia, Malaysia, Philippines, Singapore, Thailand and Vietnam, is quickly emerging as the next digital giant. The region is currently home to an online population of 400 million people, a 53% increase from 2015.
Disclosure: This material has been distributed for informational purposes only. It is the opinion of the author and should not be considered as investment advice or a recommendation of any ...
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