Robust growth from the emerging market basket in January was always going to be tough to beat, but research from February’s gains show just how strong these markets are performing against developed ones, and not just from the traditional BRICs either, research from S&P Indices shows.
Egypt has been a prime example. Following a bout of political unrest and subsequent removal of Hosni Mubarak after nearly 30 years in power, Egypt’s market returns have rocketed, climbing 15.3 percent in February on top of January’s 44.3 percent take-off.
Thailand, Chile, Turkey and Colombia are also on the to-watch list as these emerging lights have all flashed double-digit returns in the first two months of this year, while all twenty emerging markets included in the S&P data were up, gaining an average of 6.62 percent, making gains in the year-to-date a mouth-watering 18.95 percent.
Compare that with developed market returns of 4.6 percent in February, led by Nordic countries in particular Norway with (13.8 percent) in February, Denmark (13.5 percent) and Sweden (10.2 percent).
Yet returns in developed markets were dragged down by Israel (-1.9 percent) and Greece (-2 percent). Overall developed markets grew 10.3 percent in the first two months of the year.
So taken together – equity markets have gained $1.6 trillion in February, which when added to January’s bullish run, clawing back all $3 trillion worth of losses in 2011 leading to the best start the S&P 500 has had since 1987.