Using the Lumen Global Value Compass calculated market-implied expected returns and stress-testing with the Residual Income Model, we discovered lots of value dispersion regionally and within the emerging world. Intrinsic risk is more skewed towards EM than DM.
China (A) Market and Sector Outlook in a Few Charts
Based on our intrinsic value vs. intrinsic risk calculation using the Lumen market-implied expected returns, we highlight a few sectors – healthcare, financials, and consumer staples for the China A-share market.