Wall Street investment banks claim the end of the "lost decade" for emerging markets.

date
18/05/2025
Wall Street investors are betting on emerging market stocks, predicting that under the backdrop of a weakening US dollar and concerns over US debt and deficits, the performance of emerging market stocks will surpass that of the US stock market in the coming years. Emerging market stocks have already risen by 10% this year, outperforming the stagnant S&P 500 index. Investors are increasingly turning their focus to developing countries in search of returns, citing reasons such as faster GDP growth and healthier debt situations in these countries. Despite the potential risks and challenges, investors are still seeking alternatives to the US market, with some funds shifting towards emerging market bonds, as well as stocks in sectors such as banking, electrification, and healthcare that are more immune to high tariffs.