THD - The Case For Emerging Markets: Likely Long-Term Outperformance

February, 04 2019 06:27 PM iShares Inc MSCI Thailand

While they tend to be quite volatile year to year, I have a positive view towards emerging markets (EEM) in general over the next decade.

The reasons are simple:

Emerging markets have quite low current valuations by absolute and historical standards.
On average, emerging markets have less debt than advanced nations (just watch out for dollar-denominated debt for some of them).
The majority of emerging markets have faster GDP and population growth than developed countries, with some exceptions.
As a whole they are becoming more consumer-oriented, more technology-focused, and less commodity-dependent.
Volatility is