2024-07-30 15:17:00 ET
Summary
- We are believers in the Indian renaissance story but find broad India equity valuations to be excessive relative to underlying fundamentals.
- Though China has a growth problem that needs to be addressed, it also has some of the greatest investment opportunities globally, in our view.
- We believe a backdrop of lower sovereign US rates may translate into significant outperformance for large swathes of emerging market equities.
By Justin Leverenz, CFA, Chief Investment Officer, Developing Markets Equities
China and India are the two heavyweights in emerging market ((EM)) equities - two continental size economies that account for approximately 45% of the EM equity benchmark. 1 For EM investors, getting these two right matters, particularly after the massive divergence in performance they’ve experienced over the past few years. But getting them right requires a deep understanding of the bigger picture — the narratives that have driven these recent returns have overwhelmed realities, in our view. Here’s how we view the opportunities in each market based on the narratives and the numbers....
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For further details see:
Narratives Vs. Numbers: What's The Real Story In China And India?