Brazil Market Doubles Over 12 Months

Emerging markets have been the standout performer of the last 12 months. Russia and Latin America in particular - with Brazil equities up an astonishing 97%

Dan Kemp 3 March, 2017 | 10:22AM
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A quick review of the past 12 months has seen a plethora of developments. To name a few, we have navigated a strong commodity rebound, high-profile impeachments, unlikely election victories and the end of an earnings recession. We have also witnessed the continuation of the low inflation and low interest rate environment, although these are thought to be changing as part of the Donald Trump induced reflation story.

The importance of asset allocation must be acknowledged in this regard, especially as valuation pressures mount in key markets – particularly US equities and European treasuries. Equity exposure has generally proved beneficial to end-investors, with a 23% global rally in US dollar terms, while headline fixed income has been relatively flat at 0.6%. Therefore, higher risk profiles have typically outperformed those with a cautious stance and elevated cash.

As we monitor the leaderboard, the standout asset class exposures over the past 12 months to  February 28 are as follows

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About Author

Dan Kemp

Dan Kemp  is Chief Investment Officer, Morningstar Investment Management EMEA