EM/DM Relative Performance vs. U.S. Dollar The strength of the U.S. dollar can affect the relative performance of EM/DM equities. A weak U.S. dollar has historically led to outperformance of emerging market equities. Image: BofA Global Investment Strategy
Distressed EM Bonds Distressed emerging market corporate bonds are trading at the Lehman/GFC lows. Image: BofA Global Investment Strategy
10-Year Government Real Bond Yield Some emerging markets still have positive 10-year government real bond yields. Image: Alpine Macro
Performance – MSCI EM/S&P 500 Why are emerging market equities underperforming the S&P 500 for so long? Image: The Daily Shot
EM vs. DM Valuation Emerging market equities look attractive relative to developed market equities. Image: Goldman Sachs Global Investment Research
Performance – What Asset Class Do You Think Will Outperform in 2021? FMS investors expect emerging markets, the S&P 500 and oil to outperform in 2021. Image: BofA Global Fund Manager Survey
Equity Prices – EM Relative to DM vs. Gold Prices Is the relative performance of emerging market equities vs. developed market equities at a major market turning point? Image: BCA Research
World Central Bank Gold Holdings In the current environment, where uncertainty surrounding emerging market currencies is high, this chart shows the robust EM central bank demand for gold. Image: Deutsche Bank
China: Chinese Firms Reliance on USD-denominated Debt Chinese firms reliance on USD-denominated debt is lower than other emerging markets. But a weakened yuan would hurt Chinese firms. Image: Institute of International Finance
Global Earnings since 2006 This chart shows global earnings since 2006 (USA, Emerging Markets, Japan and Europe). As Warren Buffett said: “for 240 years, it’s been a terrible mistake to bet against America.” This chart below illustrates it well since 2006. You may also like “Earnings Matter, Over the Long Run.” Source: J.P. Morgan Asset Management