Emerging markets will create plenty of opportunities related to smart technology"". How? Explain with the help of an example.
Answers
Answer:
investors to be excited about emerging markets today after a long lull. Yet it remains true that these markets can be difficult to enter as an investor, returns on investment are more volatile than in developed markets, and understanding market fundamentals is challenging due to faster shifts in consumer preferences, and in regulatory and policy patterns.
Why might it be different this time, and how?
1. EM tech is delivering revenue growth
After five years of lacklustre performance as an asset class, analysts expect EM equities earnings growth could be up by as much as 23% this year, following a 2% contraction in 2016. The consensus expectation is that technology stocks will lead the charge and some leading indicators justify this view. Technology companies count for around 25% of the MSCI Emerging Market index top 10 stocks, having taken over telecommunications and energy. In the first quarter of 2017, the same index was up by 11.4%, recording the strongest first-quarter performance since 2012. Notably, Chinese technology companies listed on the
★Answer★
Governments in many EM countries are pushing a strong digital agenda, including smart cities and incentives for technology companies.