The Emerging Markets You Can’t Afford to Ignore

The U.S. economy is seven times larger than Brazil's economy. Yet the U.S. stock market is 12 times larger. That's simply the result of the fact that most global investors want exposure to the United States, relatively under-weighting Brazil and other markets in the process. Now consider this: the Brazilian economy, due to its relatively undeveloped nature compared with the United States, is poised to grow by a faster pace than the U.S. economy in the next 20 years. By some estimates, the U.S. economy will only be three times as large as the Brazilian economy by 2040. In that light, does it still make sense that the U.S. stock market should be 12 times as large? . . . → Read More: The Emerging Markets You Can’t Afford to Ignore