Bloomberg Intelligence's 'Equity Market Minute' 1/8/2020

The video discusses the current state of emerging market stocks, highlighting that they are trading at peak cycle multiples. To surpass this, significant earnings acceleration is needed. The forward PE multiple for the MSC IEM index is analyzed, showing a peak at 13 times forward estimates. Operating margin expansion is identified as a key factor for growth, with a comparison of margins between emerging markets and the US. The video concludes with a call for margin expansion to achieve higher multiples.

What trend in operating margins is noted as significant for emerging markets in 2017?

What is the anticipated requirement for emerging market stocks to surpass the former peak multiple of 13 times earnings?