The average annual return on investment in shares of companies from emerging markets – including Poland – in the coming decade may reach even 11 percent – more than any other asset class, according to asset allocation company Research Affiliates.
Research Affiliates raised its forecasts of return on investment in equities emerging markets. In March, the expected rate of return in the next decade was to average 9 percent annually.
The company already in February 2016 announced the shares of companies from developing countries as an ’investment of the decade’. Over the next two years, their value actually increased by 75 percent.
However, due to the outbreak of the trade war between the United States and China and the coronavirus pandemic, as well as the unrest in the oil market, the value of MSCI – the index of developing countries – has fallen by 23 percent this year.
However, Research Affiliates notes that after the epidemic, the survivors' growth will be even faster than it was because competition will be smaller.