For yet another year I have failed to make it to the World Economic Forum’s shindig in Davos. It is so not me anyway. I guess I could probably waffle about this and that akin to everyone you will see on the TV, radio and internet over the next few days, but there are so many better things you can be doing than spending a fortune to get a ticket. I see the Davos meeting this year is titled “cooperation in a fragmented world”, which I am sure is all about spending lots more money. Suffice to say, common-sense is a lot more boring and a hell of a lot cheaper. And that brings us back to the world of global equity markets over the rest of the 2020s and beyond, and the comments of the leading emerging markets fund manager Ashmore Group (ASHM) today.
We have talked many times in the past about the reasons why the next fifteen years in global markets are going to be different from the last fifteen years. You should never worry about change (in fact I would worry more about a lack of change in economics or in life in general). And, if I had to make a guess about the focus of the investment world in 2037, I doubt it will be all about favourite Nasdaq holdings or how high the dollar is. Simply put, investors in Ashmore Group (ASHM), “one of the world's leading Emerging Markets investment managers with a history of consistently outperforming the market”, should be feeling excited about prospects. But despite a near 7% rise in the share price today, why is their stock nearly down 40% over the last five years?
The 1980s was a great decade in many ways with the best music, best prime minister, massive new excitement about capitalism and much, much more. It was a great decade to be a teenager and learn about shares through reading the Daily Mail.
Mid-October is always when the investment world gets more busy again, with the American corporate earnings season starting this week and Europe (including the UK) next week. All good fun, especially in a month (or so) when I will rack up my 25th anniversary of being involved at some level with the City. What fun!
I have been criticised before for using the phrase ‘emerging markets’ with the observation “so what are they emerging from then?”. And there was I thinking that a bit of ESG utilisation would have made everything okay... Anyhow, I came across an interesting graphic the other day, which hopefully the internal technical genius (i.e. Darren) can upload.