When it comes to emerging stock markets, which already have jumped 15 percent so far this year, you ain’t seen nothing yet.
So says JPMorgan Chase emerging markets strategist Adrian Mowat. He writes in a note to customers that emerging stock markets will soar an additional 38 percent this year.
What will fuel the move? The massive fiscal and monetary stimulus in countries ranging from the U.S. to China will revive demand in these countries, says Mowat, whose comments were published on Bloomberg.
He sees the MSCI Emerging Markets Index surging to 900 this year from 647 at present. Already the MSCI index has rocketed an astounding 36 percent in just the past six weeks to reach a six-month high.
“There are significant tailwinds for emerging-market economies,” Mowat writes. “As the evidence mounts, the bears are being dragged into the markets.”
Mowat likes companies in cyclical industries, such as technology, that benefit from economic strength.
He’s down on defensive stocks, such as phone companies, that thrive during periods of economic weakness.
Mowat tags overweight ratings on Taiwan, South Korea, Mexico, China, and Thailand.
Gains by emerging markets represent quite a turnaround from last year, when the MSCI index plunged a record 55 percent.
Mowat isn’t the only expert who is bullish on emerging markets. Morgan Stanley strategist Jonathan Garner feels the same way, as does Templeton Asset Management’s Mark Mobius.
© 2017 Newsmax. All rights reserved.