No end yet for Emerging Markets rally, says Terra Nova

(Nov 17): Is there an end in sight to the surge in emerging market equities that’s pushed their performance ahead of developed markets?

Terra Nova Capital Advisors says this year’s 29% advance that’s sent the MSCI Emerging Markets Index to its highest level since 2011 will endure for two more years as declining debt levels in developing economies leads to sustainable economic growth.

“I don’t think we have seen the end of the EM rally,” said Ami Kemppainen, Dubai-based managing partner at Terra Nova, which runs a US$125-million fund focused on emerging and frontier markets. “We could see a couple of more years of nice performance. Perhaps the thing that will end it is a global correction in all equity prices.’’

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