It looks as though since the rally in domestic securities portfolio managers across the board are less bullish on domestic securities.
The fact of the matter is that Domestic evaluations are within line of expectations and emerging markets represent attractive evaluations on a forward
Basis. I have looked at the Hang Seng VS. TSX and have seen great value and upside in the Hang Seng.
PE Ratio: 10.55
Forward Basis: 11.02
PE Ratio: 15.3
Forward Basis: 14.08
Canadian managers are most enthusiastic about emerging markets equities, with 62% holding a favorable outlook on the asset class
The evaluations on a forward basis for the Hang Seng in this example provides great value to investors with long term growth horizons.
Fundamentals of EM space is undeniable with 75% of Global growth coming from EM Space and when by 2030 EM will represent close to
55% of global market cap, no surprise PM’s alike are bullish on this asset class.
As IA’s build portfolios they must keep in mind the opportunities and great evaluations to have their clients situated for long term growth
Potential in economies that will soon be recognized as the largest in the world.
Written by Sam A.