Emerging markets optimism overplayed - SLI

The optimistic outlook for global emerging markets equities is being overplayed, Standard Life Investments believes.

Head of global strategy Andrew Milligan believes there is not enough evidence when examining GEM equity valuations to suggest they will outperform developed markets over the near term. Milligan says despite record inflows into emerging market equities in 2009 and the growing recognition of the structural drivers in many emerging economies, the near term returns from emerging market equities will be no better than their developed economy counterparts. Many investors assume GEM equities always provide superior returns compared to developed equity markets, he says, when in practice there...