Goldman Sachs analysts have noted a recent rebound in emerging market stocks, primarily fueled by a surge in Chinese markets. This has led to China outperforming other emerging markets at its highest level in 25 years.
The investment bank remains optimistic about the future of emerging market equities. Analysts, including Kamakshya Trivedi, have highlighted several factors contributing to this positive outlook: expected interest rate cuts by the Federal Reserve, easing policies by other emerging market central banks, and China's anticipated economic recovery driven by stimulus measures. Additionally, corporate earnings growth is projected to be around 15% at reasonable valuations.
Despite potential volatility from geopolitical risks, such as the U.S. elections and tensions in the Middle East, Goldman Sachs maintains a positive stance. The bank forecasts that the MSCI Emerging Markets Index is likely to reach 1300 points within the next year, representing a 12% increase from its current level of around 1160 points.
