In the first few months of 2021, emerging market (EM) equities have accelerated ahead of their developed world counterparts as expectations of a global economic recovery have been boosted by the progress in the development of coronavirus vaccines and the rollout of vaccine programs in several countries.
Where do EMs go from here? We believe that EM equities are a dynamic hunting ground still ripe with diversified growth potential, particularly as local economies come back online following the COVID-19 pandemic. Improving economic and fundamental data—along with attractive relative valuations—support the case for a dedicated, strategic EM allocation.
In this ebook, we will explore how the macroeconomic and policy forces at play, combined with a favorable foreign exchange outlook, bode well for EM in this recovery. We will highlight areas where we believe there are compelling investment opportunities, and we will evaluate risks and regulatory concerns that stand to dampen the upside potential over the next few years.