Interesting 24-page report....http://investments.miraeasset.us/perspectives/2012-global-outlook-on-emerging-markets.html
2012 Global Outlook on Emerging Markets
•Increased levels of volatility have enveloped global equity markets in the second half of 2011. Contagion in the euro zone and fiscal uncertainty in the US have weighed on stock prices and future growth prospects globally.
•Inflationary pressures have abated across emerging market countries on the back of a slowdown in global growth. Food and commodity prices have fallen from their early 2011 peaks, which has resulted in a drop in consumer and producer prices.
•In anticipation of weaker demand and slower growth from developed markets, central banks in emerging market economies have begun to loosen monetary policy. We expect this trend to continue into the first half of 2012, as the macro environment remains unclear.
•Valuation remains attractive across emerging market equities, relative to their developed market counterparts. Price-to-earnings ratios are below long-term historical averages and close to 2008 lows.
•Emerging market equity fund flows, while negative for the year, are likely to reverse course modestly in 2012 given attractive valuation and resilient economic growth in the region, although risk appetites will remain suppressed until a clearer resolution of the euro zone debt crisis materializes.