Goldman Sachs Predicts $80 Trillion Emerging Stock Market by 2030 (EEM)

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Goldman Sachs
GS
expects the market value of emerging-market stocks to more than quintuple to $80 trillion by 2030, Bloomberg is reporting. According to a Bloomberg report, "Faster economic expansion and growing capital markets may lift emerging nations’ share of world equity capitalization to 55% by 2030 from 31% today, Goldman strategists led by Timothy Moe wrote in a research report. Institutional investors in developed nations will probably buy a net $4 trillion of emerging-market equities, lifting holdings to 18% of their total portfolios from 6% now, Moe wrote." "The primary drivers are rapid economic growth and the maturing of equity markets that are at earlier stages of development," Moe wrote in the report. "Developed-market institutional asset management pools will need to increase their holdings of emerging-market equities." The iShares MSCI Emerging Markets Index ETF
EEM
has more than doubled since the beginning of 2000. Emerging economies will expand 6.4% as a group next year, compared with 2.4% in developed nations, according to forecasts by International Monetary Fund. "Emerging equity market capitalization could increase substantially," Moe wrote. "Investors, financial intermediaries and developed-market corporates will have significant opportunities as well as challenges from these shifts in the equity landscape." The iShares MSCI Emerging Markets Index is up 1.2% this afternoon, to $41.92.
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Posted In: Emerging Market ETFsIntraday UpdateMoversETFsBloombergGoldman Sachs
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