A new world for stocks

Emerging-market stocks are set to grow significantly in market value as their economies expand.

By Kim Peterson Sep 8, 2010 3:58PM
cash globe © PhotoAlto/SuperStockAt the rate things are going, China will have the world's largest stock market within two decades, according to analysts at Goldman Sachs.

And the market value of stocks in emerging markets could hit $80 trillion, overtaking developed nations, the analysts added, as reported by Bloomberg. Emerging nations are growing their economies faster, and could nab as much as 55% of the world's equity capitalization within 20 years.

Wall Street is all over this one. Look for emerging-market stocks to start filling in a larger chunk of investment portfolios as we head to this new reality.

You can already see this trend in the MSCI Emerging Markets Index (EEM), which has nearly doubled in the last 18 months. Investors have put more money into emerging-market equity funds for 14 weeks in a row now, Bloomberg reported.

The International Monetary Fund expects that emerging economies will expand about 6.4% next year, compared with only 2.4% in developed countries, Bloomberg reported.

0Comments

DATA PROVIDERS

Copyright © 2014 Microsoft. All rights reserved.

Fundamental company data and historical chart data provided by Morningstar Inc. Real-time index quotes and delayed quotes supplied by Morningstar Inc. Quotes delayed by up to 15 minutes, except where indicated otherwise. Fund summary, fund performance and dividend data provided by Morningstar Inc. Analyst recommendations provided by Zacks Investment Research. StockScouter data provided by Verus Analytics. IPO data provided by Hoover's Inc. Index membership data provided by Morningstar Inc.

STOCK SCOUTER

StockScouter rates stocks from 1 to 10, with 10 being the best, using a system of advanced mathematics to determine a stock's expected risk and return. Ratings are displayed on a bell curve, meaning there will be fewer ratings of 1 and 10 and far more of 4 through 7.

116
116 rated 1
284
284 rated 2
461
461 rated 3
671
671 rated 4
628
628 rated 5
618
618 rated 6
615
615 rated 7
495
495 rated 8
347
347 rated 9
115
115 rated 10
12345678910

Top Picks

SYMBOLNAMERATING
DYNDYNEGY Inc10
TAT&T Inc9
VZVERIZON COMMUNICATIONS9
EXCEXELON CORPORATION8
AAPLAPPLE Inc10
More

VIDEO ON MSN MONEY

ABOUT

Top Stocks provides analysis about the most noteworthy stocks in the market each day, combining some of the best content from around the MSN Money site and the rest of the Web.

Contributors include professional investors and journalists affiliated with MSN Money.

Follow us on Twitter @topstocksmsn.