Photo: ReutersHong Kong: Riots, drought, social instability: Emerging markets are never easy. One potential positive for investors is that the calculation of political risk in China becomes much simpler. Pessimists need to ask if investors have priced in enough political risk. Lured by earnings growth estimated to be 23% this year, investors pushed the MSCI Emerging Markets Index to 16.7 times historic earnings, well-above the 10-year average of 13.6 times. Four years ago, the country accounted for just over 15% of the MSCI Emerging Markets Index; this year, it’s one-third.

Source: Mint February 26, 2018 07:18 UTC