Emerging market equities will lead annualised returns between 2027 and 2031, reaching 8% in euros. This information is based on Robeco's report 'The Great Reconfiguration'.
According to expansion.com, emerging market equities are positioned as the asset with the highest expected annualised return for the 2027-2031 period, reaching 8% in euros and 8.75% in dollars. This analysis is part of Robeco's five-year market forecast report, titled The Great Reconfiguration.
The report indicates that the emerging markets stock exchange offers the highest annualised return, followed by developed market equities with a 7% return and listed real estate, which is also expected to yield 7%.
The positive outlook is supported by four main arguments: attractive valuations compared to developed markets, the impact of the reconfiguration of global trade, a great diversity of economic drivers in emerging markets, and a potential turning point in China, which could reactivate domestic consumption.
Additionally, Robeco estimates that annualised inflation will be 2.50% for the eurozone, giving emerging equities an expected net real return premium of 5.50 percentage points over inflation in euros.
Developed market equities and the listed real estate sector also present a projected return of 7% in euros. Robeco bases its positive outlook for the real estate sector on the high expected returns and inflation protection, as well as the growing need for infrastructure and strategic real estate in the new trade context.
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