Alternatives to the SP500

Alternatives to the SP500

about 1 year ago1 min

  • A lot of the things that have derailed Emerging Markets in the past (strong US dollar/weak China) haven’t this time – they have been resilient. This is encouraging for future returns.

  • GDP growth is not correlated with equity markets in the near term, but it matters. The most important thing for long-term GDP growth are demographics.

  • Strip out the mega-cap tech stocks and the S&P 500’s outperformance vs other markets over the last ten years is far less. Whilst it’s commonly suggested that returns will be lower going forward, that’s not the base case for UOB’s EM outlook.

A lot of the things that have derailed Emerging Markets in the past (strong US dollar/weak China) haven’t this time – they have been resilient. This is encouraging for future returns.

GDP growth is not correlated with equity markets in the near term, but it matters. The most important thing for long-term GDP growth are demographics.

Strip out the mega-cap tech stocks and the S&P 500’s outperformance vs other markets over the last ten years is far less. Whilst it’s commonly suggested that returns will be lower going forward, that’s not the base case for UOB’s EM outlook.

Watch the event here

In this Modern Investor Summit session, Finimize Analyst, Paul Allison, discussed alternative options to investing in the SP500 with Anthony Raza, UOB Head of Multi-Asset, and Andras Vig, Multi-Asset Strategist at Invesco.

Replay the event here.

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