Emerging-Market Stocks to Rally 20%, Citigroup Says
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Emerging-market stocks will rally 20 percent to 25 percent by the end of this year as the world economy avoids a double-dip recession and attractive valuations lure investors, according to Citigroup Inc.
Most of the rally will come in the fourth quarter as shares stay in a “trading range” during the historically weak months of August and September, New York-based strategist Geoffrey Dennis wrote in a report dated yesterday. Developing nations will lead the global economic recovery with growth of 6.8 percent this year and 6 percent in 2011, Dennis wrote.