Most Promising Emerging Market: A summary based on Ruchir Sharma opinion

In every decade since World War II, almost a new region or country has prominent in the market and global economy. Previously, the 1950’s there was a spectacular recovery in Europe, In 60’s we saw the early generation raise in American corporate giants. Moreover, In the 1970s oil commodities has been treated as emerging world exporters, in 80’s Japanese stocks surged and ’90s and till 2000 American tech seen as emerging market. The 2010 decade is also another American decade with dominated by its Mega caps. In the markets, America dominated even more completely. Its stock market gained more than 250 percent or more than three times returns in Europe and China, and five times those in emerging markets as a group including India. By the end of the decade, the United States accounted for 56 percent of the total value of stock markets worldwide, up from 42 percent in 2010. Meanwhile, emerging stock markets had suffered their worst decade of returns since the 1930s.

There are many reasons to expect the 2020s to see a comeback of smaller companies. One is that over the 2010s, smaller stocks gained 110 percent in the US less than half the gains of large companies. In India, smaller stocks were up just six percent, compared to 115 percent for large companies. Historically, small companies tend to outrun or at least keep pace with large ones, so the dominance of the big is not likely to last. Other forces favoring the small: the political mood is growing less friendly to trade and more nationalistic, both of which encourage "buy local" movements and undermine big multinationals. Surveys show growing distrust of large companies in nations from India and China to France, Germany, and the United States. And today's leading companies are internet platforms, such as Amazon and Flipkart, which give small companies instant access to a broad audience and instant credibility with consumers. All of this could help make smaller beautiful again in The 2020s.

In the 2010s, millennials and Generation Z overtook baby boomers as the largest age groups in the global population. The oldest members of Gen Z are under 21 and have yet to fully reveal their buying habits. The oldest millennials are 37, and they are very different from older generations: much more likely to make investment decisions based on social values, to share information in exchange for perks, to own a smartphone or a gaming machine. Flipping companies, often beyond the scrutiny of public markets, private equity firms became a symbol of capitalism by and for the ultra-wealthy in the 2010s. They may be replaced as the trendy investment vehicle of the 2020s by firms that promise to invest in socially and environmentally responsible ways; assets managed by these firms in developed markets doubled between 2012 and 2018 to $30 billion. With support from millennial investors, they are becoming symbols of new moral capitalism.