Emerging market performance in 2024
2024 is shaping up to be a significant year for emerging markets, with many nations already recording positive returns. Among these, Taiwan has seen a significant increase thanks to the growth of technological stocks, driven by the growing interest in artificial intelligence. This trend has led to a revaluation of technological stocks, making Taiwan a point of reference in the emerging market landscape
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India and China: two success stories
India continues to shine, showing solid performance even after the recent elections. The markets reacted positively to the election results, leading to new all-time highs. On the other hand, China surprised investors with an unexpected rally, which began in September, thanks to the announcement of economic stimulus that reassured the market. These developments suggest that, despite global uncertainties, emerging markets may still offer attractive investment opportunities
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Global uncertainties and the impact of US policies
The global environment remains complex, with uncertainties regarding interest rates in the United States and the direction of the global economy. The election of Donald Trump has raised concerns about potential high tariffs that could negatively affect emerging economies, especially those close to China. Aggressive trade policies could lead to a contraction in economic growth in these regions, creating a climate of uncertainty for investors
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Value in emerging market equities
Despite the challenges, analysts still see significant potential in emerging market equities. After a period of sell-offs and currency weakness, emerging equities are currently trading at historic discounts compared to developed markets. This scenario could represent an opportunity for long-term investors, especially considering the economic growth potential of countries such as China and Mexico, which could benefit from favorable trade negotiations
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Future Prospects and Investment Opportunities
Looking ahead, there are signs to suggest that trade tensions may ease. History has shown that the United States and China can find common ground, and the hope is that a trade agreement can be reached that favors both sides. In addition, China has the capacity to stimulate its economy, which could translate into increased domestic demand and sustainable growth. Investors should closely monitor these developments, as they could present attractive investment opportunities in emerging markets
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