Which Stock Market Will Soar Next?

Before the credit crisis GDP growth meant big returns to investors; China was proof of that. So can you use economics to predict stock market returns?

Emma Wall 6 December, 2013 | 11:55AM
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Investors in emerging markets could have used economic growth as a barometer of stock market growth before the global recession. 

China was among the fastest growing economies - and offered savvy investors double digit annual returns. But fast forward to 2013 and this is no longer the case. Chinese GDP growth may have slowed, but it is still double that of the US, and yet while Shanghai Composite Index has fallen significantly over the past two years, the S&P 500 has climbed steadily upwards.

Global equities fund manager for T. Rowe Price Ray Mills revealed at a conference in New York on Tuesday that these are not unprecedented times however.

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About Author

Emma Wall  is former Senior International Editor for Morningstar

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