Three Reasons Investors Should Look to Emerging Markets

Morgan Stanley Report

Date:

Author: Funds Society, Miami

EM stocks are currently in one of their longest bear markets, with the MSCI Emerging Markets Index down about 40% from its February 2021 peak

Global inflation in oil and food prices and the strong U.S. dollar have further dragged on the markets

The strong dollar raises the cost of dollar-denominated debt and imports for emerging markets

Investors should consider rebalancing EM exposure with an eye toward China onshore companies, as well as opportunities in South Korea, Taiwan and Brazil