LDEM - Why Does Volatility Often Lead To Strong Emerging Equity Returns?
2025-04-18 09:52:00 ET
Summary
- History suggests that past volatility peaks have created favorable moments to invest in EM stocks.
- This year through mid-April, the MSCI Emerging Market Index fell by less than the S&P 500. In our view, this indicates that much of the bad news from tariffs was already priced into EM assets, while US stocks needed to adjust.
- The fear factor is being driven by real uncertainties as investors struggle to price in the macro and micro impacts of tariffs on economies and companies.
Past performance and current analysis do not guarantee future results. *In US dollar terms. Left display as of April 8, 2025; right display as of March 31, 2025 Source: Bloomberg, Cboe Global Markets, MSCI, S&P and AllianceBernstein (AB)