Some emerging markets have shown amazing returns in the last 24 months. No wonder InvestingHaven‘s research team is writing about them in that same time period. Think of India as our top favorite forecast and how it literally outperformed all other emerging markets, in line with our expectations. It’s time now to turn our attention to 2019, and come up with our very best 2019 forecast for emerging markets. We identify our 4 top emerging markets for 2019 and beyond.
In general, we expect a new bullish trend to start now in emerging markets for reasons laid out in detail in this recent article Emerging Stock Markets: Beautiful Test Of 2018 Bull Market Breakout. If this holds true for emerging markets as a group then the number 1 priority for investors is to identify the top emerging markets for 2019 and beyond.
Note: we focus only on the charts in this article. That’s in line with our ‘start with the chart’ principle. The key principle is that the chart must give green light before even thinking of making an investment. The additional research like fundamentals and outlook can only happen if the chart looks constructive, promising and has clear patterns.
We invite readers to do additional research on each of the 4 emerging markets that have a bullish chart setup for 2019 and beyond.
#1 top emerging markets in 2019: India
India is one of our top forecasts in the last 24 months. This is what we wrote 2 years ago India Stock Market Strong Buy, Much Higher Prices Coming In 2016.
The long term chart of India, and why it justifies being our top emerging market for 2019, is the fact that India tries to move from the current rising channel to a higher one (not created yet on the chart). That’s the key in forecasting: try to identify a point where a market is heading towards.
We strongly sense that India will accelerate its rise.
If that’s what is happening right now we will see a similar move as the one in 2005 where India moved to a higher level channel.
#2 top emerging markets in 2019: Brazil
Brazil was also one of our favorites on our top emerging markets list last year.
From a chart perspective this recent breakout last year is gorgeous, primarily because it got tested successfully recently.
As emerging markets were going through some rough waters a couple of months ago Brazil respected its support. Relative strength is the reason why we believe that Brazil will be a top emerging market in 2019.
Given the strong recent rise we will likely see 100k points in 2019.
#3 top emerging markets in 2019: Thailand
Maybe unexpected but Thailand also qualifies as a top emerging market for 2019 and beyond.
Look how the breakout on its chart got successfully tested recently. This is a similar setup as Brazil though Thailand has a clearer pattern in terms of the channel in which it is moving. We expect this lower channel to be the dominant one for 2019, and it might bring the index from the current 1700 points to 2200 in 2019 or 2020.
#4 top emerging markets in 2019: China
Last but not least: China.
It may not be breaking out similar to the other 3 top emerging markets we highlighted above. The beauty about China is that it is testing secular support. This is what we explained last week in 3 Must See Charts On China’s Stock Market Selloff in 2018
We strongly doubt that China’s secular support will give away. We believe this market will need a bit of recovery time before it literally takes off in 2019 and beyond!
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