PPEM - Will Emerging-Market Equities Finally Outperform In 2020?
By Bill Witherell, Ph.D.
Following outflows from emerging-market equity funds during the first three quarters of 2019, significant inflows are occurring in the fourth quarter as investor sentiment becomes more positive, anticipating stronger performance for this asset class in 2020. Possible future outperformance for emerging markets would follow an extended period of underperformance. Over the past 5 years, the annualized total return for the MSCI Emerging Market Index is 3.43%, less than half the 7.14% return for the all-country MSCI ACWI Index. Over the past 10 years, the comparison is worse: 2.14% versus 8.43%. How