Emerging markets 2018 in the eyes of big banks and market analysts

Asian markets reached a second record this month, and the regional benchmark went over the peak formed in 2007, driven by energy and industrial stocks. Growth in the US has also been influenced by the region's exports to the United States and Europe. This leads many investors to ask whether it is no longer late to make purchases on this market?

Here are the answers to this question to part of the large investment banks and analysts around the world

Goldman Sachs
- Revenue growth is the main driver of this year's profit for MSCI Asia Pacific ex-Japan Index, according to a report released on Wednesday.
- Corporate profits, which are worth 19% of the 30% growth in 2017. is expected to be a major driver for growth in 2018.
- Macro growth should remain solid by increasing profits by 14% in 2018
In the second half of 2018, we will probably see market difficulties as central banks around the world are expected to end the incentives.

Bank Julius Baer
- Asian markets will continue to rise due to a permanent correlation with US stocks, and they have no reason to enter the bear market.
- Expects investors to make more purchases in China, mainly due to changes in the financial sector

Bocom International Holdings Co.
- We believe companies in the IT sector have a huge potential as they show better financial results.
- The main engine of growth in 2018 is expected to be the technology giants in the region.

First Metro Investment Corp.
- The rally of the emerging markets will be strongest in the first half of 2018 before the tightening of monetary policies is in place.
- The inclusion of new shares from Continental Asia in MSCI EM will further support the region.

Michael McCarthy Chief Analyst at CMC Markets
- As indices in the US reach new peaks, Asia will be supported, but central bank policies around the world are likely to cause serious headaches to investors and large funds at the end of 2018.

Central Asset Investments
- From a fundamental point of view, the bullish market is not yet over, and we think investors will continue to pour money into emerging markets, mainly because of China's financial sector progress.

Nicholas Teo market strategist from KGI Securities
- I'm rather negative for 2018 because companies' ratings are too inflated, and the likelihood of many funds choosing to make some of their profits is great.
- I think 2018. will provide a good opportunity to get out of the market.

Olivier d'Assier Chief Strategist at Axioma Asia Pte
"I think you have to ask yourself where you are when every day you get new higher peaks. Alan Greenspan has given us the answer in the 1990s: "Very close to the" irrational exaggeration "

Source: Bloomberg Pro Terminal

Jr Trader Petar Milanov

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