Insight

Where do we find value in Emerging Market equities in 2024?

5 March 2024
Invesco Global Market Strategy Office
Where do we find value in Emerging Market equities in 2024?
Key takeaways
Capital returns have driven Developed Market (DM) performance
1

Emerging Market (EM) equities higher yields were overshadowed by higher capital returns in DM in aggregate between 30 September 2022 and 31 January 2024.

Positive environment ahead for Emerging Markets
2

A weakening US dollar, falling developed market interest rates and a potential rebound in economic growth in the second half of the year could boost returns on EM equities.

Latin America may lead emerging market regions
3

Latin American markets seem to be the most attractive with relative dividend yields higher than historical norms.

The recovery from the global equity bear market of 2022 has been on pause for Emerging Market stock markets since the middle of last year. On paper, the region could find the economic and policy environment of 2024 hospitable, especially if the global economy gets through its current soft patch and developed market central banks start cutting rates. In such a diverse region, we think it is worth digging deeper into which countries we would favour for the long term based on their valuations.

Download the paper

  • This document has been prepared only for those persons to whom Invesco has provided it. It should not be relied upon by anyone else. Information contained in this document may not have been prepared or tailored for an Australian audience and does not constitute an offer of a financial product in Australia. You may only reproduce, circulate and use this document (or any part of it) with the consent of Invesco.

    The information in this document has been prepared without taking into account any investor’s investment objectives, financial situation or particular needs.  Before acting on the information the investor should consider its appropriateness having regard to their investment objectives, financial situation and needs.

    You should note that this information:

    • may contain references to dollar amounts which are not Australian dollars;
    • may contain financial information which is not prepared in accordance with Australian law or practices;
    • may not address risks associated with investment in foreign currency denominated investments; and
    • does not address Australian tax issues.

    Issued in Australia by Invesco Australia Limited (ABN 48 001 693 232), Level 26, 333 Collins Street, Melbourne, Victoria, 3000, Australia which holds an Australian Financial Services Licence number 239916.