“Emerging-market equities are poised for further gains as the business cycle — commodity prices, industrial production, and productivity gains — is still in the summer of its expansion, according Credit Suisse. It projects a further 40 basis points of margin expansion this year alone,” reports Bloomberg.
Credit Suisse is bullish on China, South Korea, Russia, Indonesia, Malaysia and Poland. Those markets combine for over half of the weight in the widely followed MSCI Emerging Markets Index. The bank recommends being underweight Taiwan, India, South Africa, Mexico, Thailand and Chile, according to Bloomberg.
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Tom Lydon’s clients own shares of VWO.