Young Research & Publishing Inc.

Investment Research Since 1978

  • About Us
    • Contributors
    • Archives
    • The Final Richard C. Young’s Intelligence Report
    • You’ve Read The Last Issue of Intelligence Report, Now What?
    • Dick Young’s Research Key: Anecdotal Evidence Gathering
    • Crisis at Vanguard
  • Investing Analysis
    • The Efficient Frontier
    • Bonds
    • Commodities
    • Currencies and Gold
    • Dividend Investing
    • Economy
    • ETFs & Funds
    • Investment Strategy
    • Real Estate
    • Retirement Investing
    • Stocks
    • Taxes
    • Facebook
  • Money Management
  • Dynamic Maximizers®
  • Retirement Compounders®
  • Free Email Signup

What’s Behind the Bull Run in Emerging Market Stocks?

November 9, 2017 By Jeremy Jones, CFA

Emerging market stocks have had a solid bull run YTD with the benchmark MSCI emerging markets index up 34%. Good news follows good performance (yes you read that right) so the pundits are out promoting emerging market shares. The story being offered to the investment public is that growth is improving in emerging markets, emerging markets are cheap, and the U.S. is expensive. That is more or less right, though valuations could be debated, but the real story behind the boom in emerging markets shares has much more to do with Tech stocks than it does with growth and valuations in emerging economies.

Like its S&P 500 counterpart, the MSCI Emerging Markets index is a tech heavy index. Information technology accounts for almost 30% of EM today. YTD, the MSCI EM Technology index is up over 65%. Some of the stocks driving the MSCI EM Tech index higher are Tencent, Samsung, Alibaba, Taiwan Semi, and Baidu. Like the FAANG stocks driving the S&P higher, all five are highly priced and speculative. Back out tech and the emerging markets index looks much more like the performance developed market stocks.

The following two tabs change content below.
  • Bio
  • Latest Posts
My Twitter profileMy LinkedIn profile

Jeremy Jones, CFA

Jeremy Jones, CFA is the Director of Research at Young Research & Publishing Inc., and the Chief Investment Officer at Richard C. Young & Co., Ltd. Jeremy is a contributing editor of youngresearch.com.
My Twitter profileMy LinkedIn profile

Latest posts by Jeremy Jones, CFA (see all)

  • Europe Takes Aim at America’s Big Tech Companies with Copyright Demands - February 21, 2019
  • Surprise: Battery Powered Cars Don’t Work Well in Extreme Temperatures - February 20, 2019
  • What Do You Need to Do Before You Retire? - February 19, 2019

Related Posts

Our Most Popular Posts

  • Do You Have What it Takes to be a Great One?
  • The Power of a Compound Interest Table
  • What Are You Getting Paid?
  • Can You Rely on Income Funds?
  • Surprise: Battery Powered Cars Don't Work Well in Extreme Temperatures
  • Democrats Sign on for $1.5 Trillion Tax Hike
  • What Do You Need to Do Before You Retire?
  • Your Retirement Life: What States Did Americans Flee in 2018? Where Did They Go?
  • Is Your State Winning or Losing the Tax Game?
Fidelity: #1 Online Broker

The Global Bear Market

American Factories Booming

Is This Just the Beginning of the FAANG Collapse?

My Concentration Is on Full Faith & Credit Pledge U.S. Treasuries

This is What Can Happen When You Invest Without a Margin of Safety?

Search Young Research

RSS The Latest at Richardcyoung.com

  • A Prison Sentence for Former FBI Deputy Director Andrew McCabe?
  • Bernie Sanders Plan? Redistribution, not Retirement Savings
  • Americans Want to Leave Their High Tax States
  • Will Trump Reject the Neocon Case for Involvement in Iraq?
  • Welcome Back Glorious Hotel Lutetia in Paris
  • National Right to Work Could Help States That Can’t Help Themselves
  • A Widening Ideological Gulf
  • Is Crazy Bernie Radical Enough for Today’s Democrats?
  • RIP Karl Lagerfeld
  • Democracy: The Most Dangerous and Insidious Effect of Majority Rule.

About Us

  • About Young Research
  • Archives
  • Contributors

Our Partners

  • Richard C. Young & Co.
  • Richardcyoung.com

Social Media

  • Facebook
  • Twitter
  • Youtube
  • Pinterest

Copyright © 2019 | Terms & Conditions