Wednesday, September 20, 2017

A World of Contrasts

A lot of stocks listed in emerging economies are are having banner years. The  MSCI Emerging Market Index has climbed 28 percent in dollar terms in 2017, far outpacing the 12 percent advance for S&P 500, according to Yardeni Research.

But not all of them are flourishing, and the range of individual country performances has been extreme. Yardeni says the correlation between individual emerging-market stock exchanges this year has plunged to 10-year lows.

For example, the MSCI India Index this year is up 23 percent in rupees while Brazil has climbed 24 percent in reals. Meanwhile, Russian stocks, as measured by the MSCI benchmark in rubles, have slumped 9.1 percent. Pakistan, which was upgraded from frontier market to emerging status just this year, is down 19 percent.

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