In the slide above, GSAM showed that like US corporate earnings, emerging market earnings are accelerating from a 2015 trough. This trend is likely to continue as margins are improving and have room to expand. In addition, emerging market PEs are 30 percent cheaper than the S&P 500.
Here are a couple of interesting facts:
- 86% of the world's millennials live in emerging markets
- China and India are the two largest smartphone markets in the world. The US comes in 3rd place.