Large emerging countries stock markets, like the ones of the BRICS countries or Brazil, Russia, India, China and South Africa, have posted low returns measured in growth of the main indices and the leading stocks' prices compared to developed markets, especially USA's main indices DJIA, S&P 500 and Nasdaq.
This was mainly due to smartphones and artificial intelligence which together form the fourth industrial revolution and which have driven up the prices and valuation of the large, medium and small capitalisation technology companies predominantly listed on the bourses in the USA.
In 2004-2008 the growth cycle of emerging markets stocks was driven mainly by a new up cycle for the main commodities like oil, base metals, gold, silver and agriculture. Brazil, Russia and South Africa are large exporters of commodities along with most of South America and Africa.
Now a new mini up super cycle in oil is obvious. This will surely drive up the stocks' prices of large Russian oil producers like Gazprom, Lukoil and the Brazilian Petroleo Brasileiro. The rising prices of base metals lately will also contribute to rising stock prices of base metals miners in both Russia and Brazil, but also to companies based in South Africa
China is an interesting case. It has a large technology sector which is now pressured by the government to yield and bow basically to China's central government power and hence the falling stock prices of technology companies listed in China and Hong Kong lately.
And yes, I do agree with Goldman Sachs and Bank of America's latest research forecasts that a new growth cycle has begun for emerging markets stocks prices.
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