Are emerging market equities a good investment in 2024?

We remain positive on emerging market (EM) equities in 2024. Drivers for EM equities in the new year include the likelihood that US interest rates have peaked, a recovery in earnings growth, and the economic outlook in China, which appears to be past the worst.

What is the outlook for emerging markets in 2024?

In this edition, LAM portfolio managers share their outlook for Emerging Markets in 2024. Summary We believe emerging markets (EM) equities are becoming ever more attractive as it remains one of the most mispriced asset classes globally with valuation discounts relative to developed markets and U.S. equities hovering near 30% and 40%, respectively.

Are emerging markets vulnerable to global economic activity in 2024?

Outside of China, emerging markets tend to be heavy on cyclical companies and industries, making them especially sensitive to global economic activity. We expect sub-trend growth for the global economy in 2024, creating a headwind for emerging markets' prospects.