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Old 10-05-2019, 08:34 AM   #1210
pmstudent
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Join Date: Nov 2010
Posts: 124

You’re implicitly thinking that EIMI represents the economic potential of the national economies of “emerging” countries. No, it doesn’t — not well at all, anyway. It represents the market consensus of the prospects (valuations) of the stocks that happen to be listed and traded in minor stock markets located in “emerging” countries. Those are two very different concepts and constructions. The economies — some of them, anyway — could have fabulous prospects (only that; they’re not realized yet) for growth. The stock markets that happen to be located in those economies? Probably not at all — they’re probably shrinking, actually. Unless you’re predicting that whatever stock market exists in (random example) Manila is suddenly going to start attracting the best and most promising new companies that want to raise capital, and investors from around the world interested in supplying that new capital? No, that’s very, very unlikely. The best and most promising companies doing substantial business in the Philippines are raising capital by listing where the investors are: typically in New York, London, or Hong Kong.
Ok, I understand.
Are you OK with just S&P 500 instead of IWDA, since most giant global companies are US listed anyway, and no point having stagnated Japan and European markets as significant part of it.
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