A Label Without Meaning

Friday, July 21st, 2023   Categories: , , ,

EM Equities have too much complexity and not enough return

All EM equity indices comprise a mix of countries which once shared some important economic characteristics, but no longer do. The whole asset class is dominated by China, where the investment outlook is increasingly uncertain. Looking at over 20 different countries with vastly different growth profiles and levels of income no longer makes sense. Investors who wish to reduce the complexity of their portfolios should think about swapping their EM equity allocation for one to India on its own. It has outperformed its benchmark by a substantial margin over the last 5,10, and 20 years and will probably continue to do so given its superior demographic profile and productivity outlook.

Synopses can be downloaded by subscribers holding a Harlyn All Access Pass
Already hold an All Access Pass? LOG IN