- Persistent underweighting in global portfolios
- Attractive valuations
- Diversification benefits
- Frequent catalysts for change
After years of relative neglect, emerging markets are quietly staging a comeback. However, even as the asset class demonstrates improving fundamentals and resilience in the face of macroeconomic uncertainty, global portfolio allocations remain well below historical averages. In a world where traditional growth engines are slowing and valuations in developed markets appear stretched, the strategic rationale for revisiting emerging markets has never been clearer.
The case for emerging markets rests on four pillars:
