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CONTRIBUTORS

Chris Galipeau

Senior Market Strategist
Franklin Templeton Institute

Lukasz Kalwak, CFA

Market Strategist
Franklin Templeton Institute

Preview

After years of US outperformance, we believe emerging markets now offer the best combination of forward earnings and valuations.

Key takeaways

  • US stocks have led the world with the best performance and earnings growth over the past 15 years, but that picture could be changing.
  • According to our analysis, emerging markets have the strongest projected earnings growth in the next few years.
  • Current and historic valuations also suggest it’s time to consider greater exposure to emerging markets.

to explore why we believe investors may be well served to consider emerging markets when comparing equity opportunities.

WHAT ARE THE RISKS?

All investments involve risks, including possible loss of principal.

Equity securities are subject to price fluctuation and possible loss of principal.

International investments are subject to special risks, including currency fluctuations and social, economic and political uncertainties, which could increase volatility. These risks are magnified in emerging markets. Investments in companies in a specific country or region may experience greater volatility than those that are more broadly diversified geographically.