Emerging with Capacity for Growth
50%: Emerging markets' share of world GDP
Average US investors have only a 5% allocation to emerging markets, making them considerably underweight a sector full of tremendous opportunities. Looking at trends, we believe emerging markets will remain the fuel for world growth, consumption and wealth creation into the next decade and beyond. Emerging markets GDP and wealth accumulation have great long term potential based on growing exports and commodity production. These markets' share of world stock market capitalization greatly lags these countries' contribution to the global economy. They account for almost 50% of world GDP, and growing, more than 50% of world energy consumption, more than 70% of total land mass and greater than 80% of world population. The equity markets in these areas have great capacity for growth.
Source: BlackRock, November 2012
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