More than half of the world’s companies reside outside of the U.S. A portfolio investing in international equities seeks the potential benefits of diversification among the opportunities represented by international markets. Look beyond America’s borders through articles that consider the role of international equities.
Much like an iceberg, a great deal lies beneath the surface of the MSCI EM Index. By exposing the hidden layers, we can better understand what has happened in Emerging Markets over time, and better judge prospects going forward. We’ve identified five such contributors that help explain the relative underperformance of the MSCI EM Index.
We believe in international exposure for two reasons: valuation and opportunity. It appears higher earnings growth is already implied for U.S. companies. And, based on market capitalization, companies outside the U.S. comprise 43 percent of the global equity opportunity set.
Forces at work in India hold potential to fuel a long-term consumption tailwind. They include a swelling middle class, pro-growth policies and developing modern-state capacity. This backdrop supports consideration of India among Emerging Markets opportunities.