MSCI Emerging Markets Index trading at 1.6 times book value, up from a low of 1.4 times in October. JPMorgan Asset Management estimates an aggregate five-year return of 14% for the gauge — close to a previous peak.
With the chances growing that the U.S. and China will resolve their trade dispute and that a weakened dollar will keep the Federal Reserve on hold, the outlook for emerging-markets stocks is looking rosier.
That’s the conclusion that JPMorgan Asset Management reached in a report published this month, adding that emerging markets are still in mid-cycle, despite a slowing economic momentum globally. Another point in their favor: valuations have become “quite attractive” after last year’s rout.
Bloomberg, Natalie Lung, 2019-02-19, “The Sky is Blue For Emerging Market Stocks, JPMorgan Says”