For Morgan Stanley, emerging markets will lead this decade

The attractive value of these shares and the prospects of economies such as the India whose growth exceeds the pace of the United Statesmotivate turn to the emergingsays the report released by the Bloomberg agency.

Not just Morgan Stanley, but also analysts at HSBC, Barclays and Goldman Sachs recommended bet on European and emerging assetsforecasting that the flows towards them will only accelerate.

New leaders of the decade?

“In every decade there is a new market leader. In the 2010s, were the actions of the United States and large-cap tech companies, while the leaders of this decade clearly may be international actions and emerging markets“, indicated kandhari In an interview.

The numbers already show it: the MSCI index that brings together selected stocks from emerging markets presents a gain of 8.6% so far this year, in contrast to the 4.7% that he wears United States Equivalent Index.

According to the point of view of kandharithere is more and more greater divergence between US stock market capitalization size and relative share -ever smaller- of the country in the global economy, which leads investors to rethink their portfolios and consider that US stocks are overvalued.

On the other side, the low cost both of the Actions What of emerging market currencies, they add another point in favor as well as the weakening of the dollar in the last four months. “What leads to this type of movement is the growth differential, and the emerging markets growth differential is improving relatively to that of the United States”, pointed out the specialist.

According to estimates, emerging economies are expected to grow 4.1% on average in 2023 and 4.4% in 2024against 0.5% and 1.2%, respectively, in the United States.