Wealth Outlook 2024 - Slow then grow

111 Wealth Outlook 2024 | Regional outlook Asia: faster growth for 2024 as headwinds recede FIGURE 3 Indian equities premium valuations are supported by superior earnings growth EPS performance India/EM (2018=100) Valuation premium (India / EM) 2010 2012 2014 2016 2018 2020 2022 1.00 1.30 1.60 1.90 2.20 30 70 110 150 190 Source: Bloomberg, MSCI Indices, as of November 14, 2023. Indices are unmanaged. An investor cannot invest directly in an index. They are shown for illustrative purposes only and do not represent the performance of any specific investment. Index returns do not include any expenses, fees or sales charges, whichwould lower performance. Past performance isnoguaranteeof future results. Real resultsmay vary. Indian equities are among the most expensive globally, at 20 times forward 12-month earnings per share (EPS), or 77%more expensive than the emerging markets (EM) average. But they’ve been 65%more expensive than the EM average for the past five years, when Indian EPS grew by 8.8% annually even as overall EM EPS shrank by 2.6% ( FIG URE 3 ). At this stage of development, Industrials, Materials and Staples are our favored sectors. — In India today, there are now more than two workers supporting each dependent. The last decade China had demographics that favorable was 2000–2010 , when its GDP growth averaged 10.5% a year.