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Nov 20, 2018
Goldman Sachs Expects +12% Returns From Emerging Market Equities in 2019

Goldman Sachs Expects +12% Returns From Emerging Market Equities in 2019

An analysis by Goldman Sachs forecasts emerging market stocks to produce double-digit returns in 2019, after this year’s stormy patch.

The report says that developing-nation shares will probably return 12% in dollar terms next year, amidst the U.S. economy's potential expansion through 2020 and China’s fiscal stimulus. Asian stocks will outpace Latin American equities in 2019, according to the analysis.

The study expects South African rand, Colombian peso and Mexican peso to appreciate, while taking a cautious stance on the Argentine peso and the Turkish lira.

It sees value in higher-rated sovereign bonds in the Middle East and Asia.

 

Related Ticker: EEM

Contributor

Sergey Savastiouk, Ph.D. has a degree in Applied Mathematics from Moscow University and has extensive experience as an entrepreneur, investor, manager, and mathematician. His professional expertise is in applied mathematics, mathematical modeling, system and pattern analysis, and software and hardware system integration. He has served as the CEO of several hi-tech start-up companies and nonprofit organizations, which has given him proven capabilities in business strategy for high-tech start-up companies, market assessment, company formation, team building, product development, marketing, and sales. He has published numerous articles in journals and magazines on related fields. As a retail investor, he spent 15 years developing his proprietary trading and quantitative algorithms (now Tickeron’s A.I.), which brought him significant returns in trading the stock market. His current work and goal in founding Tickeron is to bring professional, sophisticated stock market analysis capabilities to retail investors via an easy-to-use interface.


EEM sees MACD Histogram just turned negative

EEM saw its Moving Average Convergence Divergence Histogram (MACD) turn negative on October 07, 2026. This is a bearish signal that suggests the stock could decline going forward. Tickeron's A.I.dvisor looked at 48 instances where the indicator turned negative. In 40 of the 48 cases the stock moved lower in the days that followed. This puts the odds of a downward move at 83%.

Price Prediction Chart

Technical Analysis (Indicators)

Bearish Trend Analysis

The Stochastic Oscillator may be shifting from an upward trend to a downward trend. In 50 of 63 cases where EEM's Stochastic Oscillator exited the overbought zone, the price fell further within the following month. The odds of a continued downward trend are 79%.

The Momentum Indicator moved below the 0 level on October 05, 2026. You may want to consider selling the stock, shorting the stock, or exploring put options on EEM as a result. In 55 of 72 cases where the Momentum Indicator fell below 0, the stock fell further within the subsequent month. The odds of a continued downward trend are 76%.

Following a 3-day decline, the stock is projected to fall further. Considering past instances where EEM declined for three days, the price rose further in 50 of 62 cases within the following month. The odds of a continued downward trend are 79%.

EEM broke above its upper Bollinger Band on September 04, 2026. This could be a sign that the stock is set to drop as the stock moves back below the upper band and toward the middle band. You may want to consider selling the stock or exploring put options.

Bullish Trend Analysis

EEM moved above its 50-day moving average on September 17, 2026 date and that indicates a change from a downward trend to an upward trend.

Following a +2.87% 3-day Advance, the price is estimated to grow further. Considering data from situations where EEM advanced for three days, in 273 of 317 cases, the price rose further within the following month. The odds of a continued upward trend are 86%.

The Aroon Indicator entered an Uptrend today. In 233 of 254 cases where EEM Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are 90%.

Notable companies

The most notable companies in this group are ConocoPhillips (NYSE:COP), PDD Holdings (NASDAQ:PDD), Tencent Music Entertainment Group (NYSE:TME), H World Group Limited (NASDAQ:HTHT), TAL Education Group (NYSE:TAL), Vipshop Holdings Limited (NYSE:VIPS).

Industry description

The investment seeks to track the investment results of the MSCI Emerging Markets Index. The fund generally will invest at least 80% of its assets in the component securities of its underlying index and in investments that have economic characteristics that are substantially identical to the component securities of its underlying index. The index is designed to measure equity market performance in the global emerging markets. The underlying index includes large- and mid-capitalization companies and may change over time.

Market Cap

The average market capitalization across the iShares MSCI Emerging Markets ETF (EEM) ETF is 19.07B. The market cap for tickers in the group ranges from 233.58M to 151.42B. COP holds the highest valuation in this group at 151.42B. The lowest valued company is INR at 233.58M.

High and low price notable news

The average weekly price growth across all stocks in the iShares MSCI Emerging Markets ETF (EEM) ETF was 45%. For the same ETF, the average monthly price growth was 53%, and the average quarterly price growth was 55%. XP experienced the highest price growth at 41%, while SAR experienced the biggest fall at -9%.

Volume

The average weekly volume growth across all stocks in the iShares MSCI Emerging Markets ETF (EEM) ETF was -23%. For the same stocks of the ETF, the average monthly volume growth was 13% and the average quarterly volume growth was 19%

Fundamental Analysis Ratings

The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows

Valuation Rating: 41
P/E Growth Rating: 64
Price Growth Rating: 57
SMR Rating: 49
Profit Risk Rating: 80
Seasonality Score: 5 (-100 ... +100)
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