From Yahoo Finance: 2025-05-23 05:24:00

Emerging market equity funds are outperforming global markets, with Latin America and emerging Europe funds up 24% this year. Morocco, Colombia, Greece, Brazil, and Portugal have seen returns of over 30%. U.S.-focused funds are up only 0.17%. Investors are shifting away from U.S. assets due to recession fears and Trump’s policies. Emerging market equity funds have attracted $10.6 billion in inflows this year, with analysts citing under-ownership and improving fundamentals as reasons for the surge. J.P.Morgan upgraded its rating on emerging market stocks to “overweight,” expecting central banks to ease monetary policy. Tech stocks in China and Hong Kong are driving gains, with opportunities in Mexico and Brazil. India may be overbought, but pockets of opportunity exist in power companies and non-bank financials. The MSCI Emerging Markets Index has a forward P/E ratio of 11.96, below its 10-year average, while the USA and World indexes are trading above their averages.



Read more at Yahoo Finance: Emerging market equity funds lure investors fleeing overvalued U.S. assets