EM Fund Stock Picks & Country Commentaries (October 17, 2023)
Twenty Indian stock picks that are considered to be liquid quality growth stocks, a US-Canada transpo stock pick that’s a nearshoring play, nearshoring observations involving Mexico, etc.
We have a variety of emerging market fund stock picks, research, observations to highlight this week (among other stocks or research getting mentions later on in this post) with some quick takes being:
A research piece that gives examples of Chinese stocks that potentially offer differentiated exposure to China.
Several Vietnam stocks albeit it’s probably still difficult for most non-local investors to access the market at this point in time.
Twenty Indian stock picks that are considered to be liquid quality growth stocks.
Some excellent recent and lengthy reports (TofC screenshots included) covering frontier markets, Africa, or India filled with useful graphics and info for investors.
A US-Canada transportation stock pick that’s a nearshoring play as they cover Canada, Mexico and the USA.
Several interesting nearshoring observations involving Mexico.
I have cleaned up the template for these posts (the future title may also change or be more post specific…) and will use the following emojis:
🗄️ Fund documents / updates
⚠️ Disclosures or restricted access e.g. based on your location, investor status, etc.
🎥 Video segment or interview
🎙️ Podcast
📰 Newspaper/magazine article
🗃️ Archived article
🔬 Research analysis
These posts will include links to emerging market fund websites that provide good and regular economic or portfolio commentary and denote the date it was last updated. For example:
🗄️⚠️ The China Fund, Inc (NYSE: CHN)
The latest monthly commentary (economic and portfolio) is from the end of September and the latest factsheet is from the end of August.
HOWEVER, and IF a disclosure pop-up appears, you will need to decide whether or not you are qualified to access the website based on the type of investor you are and your location. Unlike with company IR pages, it’s usually easy to find fund commentary or factsheets on fund websites.
Otherwise, these posts will also include interesting research analysis, fund manager interviews, and tweets. Any specific stock mentioned will be linked back to the company IR page (NOT always easy to find…), ticker, and key data plus include a description, forward P/E + forward dividend yield, and a technical chart - all pet peeves of mine when not included by writers who are more concerned about Google and SEO than their readers…
And now for the quick disclaimer:
Disclaimer. The information and views contained on this website and newsletter is provided for informational purposes only and does not constitute investment advice and/or a recommendation. Your use of any content is entirely at your own risk and it is your sole responsibility to evaluate the accuracy, completeness and usefulness of the content. Seek a duly licensed professional for any investment advice. I may have positions in the investments covered. This is not a recommendation to buy or sell any investment mentioned.
For a further disclaimer and an explanation of the reasoning behind these posts: DISCLAIMER: EM Fund Stock Picks & Country Commentaries Posts.
Note: Where possible, company links are to their respective investor relations or corporate pages. Region and country links are to our ADR or ETF pages where there are further country specific resources (e.g. links to local stock markets and media websites). Please report any bad links in the comments section.
🗄️ Fund documents / updates; ⚠️ Disclosures or restricted access e.g. based on your location, investor status, etc.; 🎥 Video; 🎙️ Podcast; 📰 Newspaper/magazine article; 🗃️ Archived article; 🔬 Research analysis
While some interesting points were made about emerging markets in this short segment, there are many sectors and stocks in the US market that are just as risky now given valuations, inflation, high interest rates, and the poor state of the US economy - especially for the average consumer:
🎥 Emerging markets are not worth the risk, focus on America: Scott Martin (Fox Business - Making Money With Charles Payne) 4:52 Minutes (October 2023)
Kingsview Wealth Management CIO Scott Martin discusses the risks of global investing on 'Making Money.'
📰 Emerging-market stocks are looking cheap, especially relative to the U.S. Does that mean it is time to buy? (MarketWatch) October 2023
With the possible exception of India, emerging-market stocks generally enjoy much lower valuations compared with their counterparts in the U.S.
That is according to a table of valuations and projected returns shared by analysts at Goldman. Many local equity markets enjoy forward price-to-earnings ratios below 10. By comparison, the S&P 500, considered the U.S. benchmark, presently enjoys a forward price-to-earnings ratio of 18.11, according to FactSet.
This is an excellent primer for anyone who is investing or interested in so-called frontier markets:
🌐 Frontier Markets Primer (FitchRatings) PDF File
Fitch’s Frontier Markets Encyclopedia is based on our in-house analysis and research, and is meant to serve as a reference guide for investors, issuers and other market participants looking to better understand frontier markets. Fitch rates 30 of the 36 sovereigns currently contained in JP Morgan’s NEXGEM index, as well as many other countries that were or could become part of the index in the future.
This is interesting:
🔬 Countries have been overshooting their inflation targets for years (Macrobond)
The blue bars on our visualisation measure how long it has been since a country was within a percentage point of its central bank’s inflation target. Mexico and the US are closing in on three years. Only South Africa and Indonesia are less than a percentage point from their targets.
The orange/yellow bars, measurable on the Y axis, show the gap between the year-on-year consumer price index (CPI) increase and the inflation target. The UK has the widest gap.
China is notable for having missed its 3 percent target on the deflationary side for seven months.
These tweets are worth noting from the Chief Economist at Pictet Asset Management:
