Economics
Emerging-Market Stocks Become a Smart Bet in a Post-Brexit World
- Earnings growth in emerging stocks will be positive in 2016
- Valuation gap to developed equities near widest since 2006
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Emerging-market stocks are looking like a smart buy as investors begin to view the developed world, from frequent terror attacks to a troubled European Union, as the sometimes riskier proposition.
This year, emerging-nation equities have outperformed their developed peers as concern over a hard landing in China subsided and a rebound in commodity prices propped up export-dependent economies. The U.K. vote to quit the world’s biggest trading bloc against a backdrop of rising violence further diminishes the appeal of regions once considered safe bets.