Emerging Markets Poised for Comeback as Valuations Become More Attractive

Emerging market stocks have lagged U.S. stocks over the past decade but may be poised for a comeback as valuations look more attractive.

Countries like Brazil, India, Mexico, and Colombia have outperformed the U.S. market this year. Greece is up 22%.

Emerging markets offer lower valuations, higher growth prospects, and central banks ahead of the Fed in fighting inflation.

China still dominates EM indexes but other countries are increasing their footprint, providing more diversity.

Risks remain from authoritarian regimes, less developed capital markets, and geopolitical tensions, so selectivity is key.