Goldman Favors Emerging Markets on Growing U.S. Value Gap: Chart

Goldman Sachs Group Inc. sees a buying opportunity in developing nations after the S&P 500 Index’s post-election rally pushed its valuation to more than a decade high relative to the emerging-market benchmark. The MSCI Emerging Markets Index “is cheaper than other equity markets and appears to be entering another growth phase,” Goldman strategists led by Ian Wright said in a client note this week. The spread was the lowest in more than two years heading into the election, further emphasizing the extent to which U.S. stock gains have exceeded their global counterparts since Trump’s victory.