Economic Progress Doesn't Equate to Market Returns
Use caution when connecting market performance to economic growth.
A version of this article appeared in the October 2017 issue of Morningstar ETFInvestor. Download a complimentary copy of ETFInvestor here.
One of the pillars of virtually every investment thesis for emerging-markets stocks is these countries' current or potential growth rates. The rationale typically follows the line that sustained high economic growth will fuel high rates of return for their respective stock markets.
Daniel Sotiroff does not own shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.