'Emerging markets offer greatest potential but high risk'

Invesco believes emerging market equities offer greatest potential for significant equity gains over the next twelve months. The group warns though that hand-in-hand with this enhanced potential is a much greater downside risk should market sentiment take a turn for the worse. The assertions were made last week at the group's Global Asset Allocation Committee meeting. According to Invesco's model, US, UK and European equities are currently 20-30% below the long-term estimate of their 'fair value'. Expanding on this, the group said that: "On a valuation basis, emerging market equities ...