Revenue on the Rise in the Emerging Markets

By 2025, the percentage of emerging markets companies in the Fortune Global 500, which ranks the top 500 corporations worldwide by revenue, is projected to be 46%, up from 26% in 2013 and 5% in 2000.
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  • From 1980 to 2025, the number of emerging markets companies in the Fortune Global 500 is expected to grow by nearly 1,000%.
  • Real emerging markets GDP growth continues to increase. Over the next five years, emerging markets GDP annual growth is projected to grow 4.9% versus 1.8% for developed markets.³

  • Investors should look to emerging markets as a possible source of high returns and portfolio diversification. Recent low correlations on non-U.S. stocks to the S&P 500 Index add to the attractiveness of developed foreign market and emerging market categories. (See Alger On the Money “When is Lower Better?”)

  • ¹Includes all current EU-28 countries

    ²Comprises Canada, Japan, South Korea, U.S. and Western Europe excluding EU-28

    ³International Monetary Fund, World Economic Outlook, 2017

    Gross Domestic Product (GDP) is the monetary value of all the finished goods and services produced within a country’s borders in a specific time period. S&P 500 is an index of 500 stocks seen by economists as a leading indicator of U.S. equities and a reflection of the performance of the large cap universe.

    The views expressed are the views of Fred Alger Management, Inc. as of May 2017. These views are subject to change at any time and they do not guarantee the future performance of the markets, any security or any funds managed by Fred Alger Management, Inc. These views are not meant to provide investment advice and should not be considered a recommendation to purchase or sell securities. 

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