When looking at various countries or regions where we invest, we consider emerging markets as representing a disproportionate amount of where equity value exists today after several years of underperformance relative to developed markets.
The U.S. economy is complex. Most people want to sum it up in one simple number: real GDP growth.
Recent data reports have added little color to the economic outlook, but that may change soon enough. The advance GDP report should show the economy advancing at a moderate pace, but results are likely to remain mixed across sectors.
Nonfarm payrolls rose at a moderately strong pace in the initial estimate for September, a bit less than expected, but well within the usual range of uncertainty.
Investors place far too much emphasis on the GDP figures. However, digging into the components suggests a less optimistic (not pessimistic) outlook for growth in the near term.