LDEM - EM Outlook: Will Nuance Make A Comeback In 2021?

• Emerging market growth stocks have had an unprecedented run versus value over the past decade.
• Growth stocks have been clear beneficiaries of the two big trends in financial markets under COVID-19 - negative real rates and great economic uncertainty.
• These twin forces have made extrapolation of the future incredibly challenging for investors, leading to a relentless search for certainty in obvious “digital” winners.
• After 10 very difficult years, we see ingredients for a sustainable bull market in EM equities. We forecast a significant economic recovery, coupled with a weaker dollar environment, that will likely result in solid gains across non-China EM markets.

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