Emerging Markets: Why the Glass Is Likely Two-Thirds Full

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Investment Strategy Insights

Markets have priced in a heavy dose of hand-wringing. Particularly strong drivers of the pessimism have been worries about the Chinese economy, monetary normalization, and trade frictions. But experience shows that the worst often fails to materialize. This may be one of those times, especially in the case of emerging markets, which were battered by these underlying concerns in 2018 to a far greater degree than other markets were.