15 Jan 2016

Emerging Market Equities Market Recap 4th Quarter 2015

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Emerging Market Equities Market Recap 4th Quarter 2015

Key points discussed within this quarter's Emerging Market Equities Market Recap include:

  • Central bank actions, declining commodity prices, a slowing rate of growth in China, fiscal uncertainty, and a strong U.S. dollar are just a few of the challenges that emerging market investors were subjected to in 2015. 

  • Emerging markets have now underperformed relative to their developed counterparts (MSCI World) for the third successive year and fourth time in the last five years for a cumulative gap of -66% in U.S. dollar terms.

  • Commodity price trends continued their descent in December as energy prices fell again. 

  • Emerging market currencies trended downward for most of 2015

  • Heading into 2016, virtually all regions and sectors are witnessing net downgrades to earnings, albeit mild aside from energy, reflecting more than just a sluggish commodity environment. 

  • As we have stressed many times in emerging markets, the best opportunities continue to reflect "self-help" situations both at the country- and company-specific levels. 

Also included in this quarter’s Emerging Market Equities Market Recap:
Additional Thoughts on a Regional Basis: a more in-depth discussion of Asia ex-Greater China, Greater China and Taiwan, EEMEA, and Latin America.

 

Click here to download the PDF

 

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