BlackRock lifts emerging market equities outlook
Major investment firms, especially BlackRock, have upgraded their outlook on emerging market stocks to an overweight rating, betting that AI resources and profit strength will drive their better performance. BlackRock expects earnings growth for the emerging markets index to exceed 34% over the next twelve months, compared to about 20% for the U.S. index, with stocks trading at 10 times projected earnings and at a 50% discount compared to American indices. The success of this forecast depends on earnings growth ability and overcoming price correction risks related to rising interest rates, oil prices, and geopolitical tensions, with expectations of improved capital flows toward emerging markets.
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