REUTERS SUMMIT-Emerging markets to outperform developed countries in 2021: Mark Mobius

By Divya Chowdhury

Dec 1 (Reuters)Veteran emerging markets fund manager Mark Mobius expects developing markets to outperform their developed counterparts in 2021 as lockdowns end by early next year and a COVID-19 vaccine becomes available.

Governments in developed countries won’t be able to continue supporting economies as they have in 2020, the founder of Mobius Capital Partners, told the Reuters Global Markets Forum from Dubai.

China is recovering well, Mobius said at the Reuters Global Investment Outlook Summit 2020, adding he also expected India to return quickly to its previous rapid growth.

“India and China are the big ones for us now, but a lot of these other countries like South Korea and Taiwan are very significant; and then if you go to Turkey and South Africa, prospects are very good in a year or two from now.”

Although he did not expect eveyone to get vaccinated

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Can even outperform traditional construction, says researcher — ScienceDaily

Results of a new five-year study of recycled concrete show that it performs as well, and in several cases even better, than conventional concrete.

Researchers at UBC Okanagan’s School of Engineering conducted side-by-side comparisons of recycled and conventional concrete within two common applications — a building foundation and a municipal sidewalk. They found that the recycled concrete had comparable strength and durability after five years of being in service.

“We live in a world where we are constantly in search of sustainable solutions that remove waste from our landfills,” says Shahria Alam, co-director of UBC’s Green Construction Research and Training Centre and the lead investigator of the study. “A number of countries around the world have already standardized the use of recycled concrete in structural applications, and we hope our findings will help Canada follow suit.”

Waste materials from construction and demolition contribute up to 40 per cent of the

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Emerging markets to outperform developed countries in 2021: Mark Mobius

(Reuters) – Veteran emerging markets fund manager Mark Mobius expects developing markets to outperform their developed counterparts in 2021 as lockdowns end by early next year and a COVID-19 vaccine becomes available.

FILE PHOTO: Mark Mobius, founding partner of Mobius Capital Partners, speaks during an interview with Reuters in Mumbai, India, October 23, 2018. REUTERS/Francis Mascarenhas

Governments in developed countries won’t be able to continue supporting economies as they have in 2020, the founder of Mobius Capital Partners, told the Reuters Global Markets Forum from Dubai.

China is recovering well, Mobius said at the Reuters Global Investment Outlook Summit 2020, adding he also expected India to return quickly to its previous rapid growth.

“India and China are the big ones for us now, but a lot of these other countries like South Korea and Taiwan are very significant; and then if you go to Turkey and South Africa, prospects are

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Four plays that could outperform in sector weakness

Tech has fallen out of favor in the past week, with mega-cap stocks such as Apple and Microsoft coming under pressure.

But, even in the case of sector weakness, two market watchers see some opportunity in the space.

Michael Binger, president of Gradient Investments, is betting on the “Amazon of China.”

“The first one I want to highlight is Alibaba. I mean, this is the big Chinese ecommerce play here,” Binger told CNBC’s “Trading Nation” on Monday. “They continue to gain share, there’s a shift in China just like there is in the U.S. here where we’re going from brick and mortar to online shopping, so I like it here.”

Alibaba has rallied 30% this year, triple the gain on the FXI China large-cap ETF.

“The second one I’d like to highlight is Cisco Systems. Cisco just had a good quarter. That’s a change of narrative there. Remember, the quarter

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Tech could outperform into year-end as Covid cases rise: Analyst

Technology stocks could see yet another leg higher in 2020, according to WallachBeth Capital managing director Andrew McOrmond.

McOrmond said what has already been a banner year for the tech trade could finish strong as the market weighs whether to price in another wave of Covid-19 restrictions or look ahead to a 2021 recovery.

“We’re in a tug-of-war between different types of investors,” he said Thursday on CNBC’s “ETF Edge.”

U.S. stocks continued to fall Thursday as fears around the recent uptick in coronavirus case counts persisted. Stay-at-home plays including Zoom Video, Slack, Electronic Arts and Netflix climbed.

“A period like [Thursday] — New York City schools closed — … just kind of reengages this kind of retail investor and day traders who are very powerful in this market,” McOrmond said. “Some of these names like Boeing and these comeback names have kind of just come in a little bit.”

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Emerging Market (EEM) looking to outperform US indices

Emerging Market has been lagging the US market in the past 10 years. One ETF which tracks the Emerging Market’s performance is iShares MSCI Emerging Market (EEM). The ETF gives exposure to large and mid-sized companies in emerging markets. Currently, the largest three holdings in the ETF are all technology-based companies, including Alibaba, Tencent, and Taiwan Semiconductor Manufacturing. The ETF does contain a lot of exposure to the Chinese market.

A look at the chart of the EEM below suggests a range bound performance in the past 10+ years. Since the Index bottomed in 2008, it has never been able to make a new high, unlike the US Indices.

Emerging Market Index is Range Bound in the Past 10 Years

Chart

In contract, the US Index S&P 500 has continued to rally and makes new high year after year since it bottomed in 2008 as the chart below shows.

S&P 500

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