EM equities bull market to run for 10 years

According to Research Affiliates

Emerging markets could see real returns of 7.5% per annum for the next decade, according to a paper published by Research Affiliates.

The paper, The Emerging Markets Hat Trick - Time To Throw Your Hat In, explained how emerging markets offer good value and strong predicted returns despite the rebound already seen in the asset class this year. In fixed income, the predicted yield spread between emerging market debt and developed markets is 5.2%, while emerging market currencies remain around 19% below fair value relative to the US dollar. The paper depressed currencies, powerful momentum and exceptional valuation levels as the ‘hat trick', a term that originates from hockey, used to describe the rare occassion when a...