Understanding Emerging Markets

Emerging markets (EM) have become increasingly interesting to investors, primarily due to attractive valuations and adjusted positioning after several years of underperformance. Many institutional investors had previously avoided substantial holdings in major EM countries, which has resulted in low allocations currently. There is a sense that as some of these countries stabilize and navigate challenges, there may be opportunities for growth. For instance, recent inflows into Chinese-related assets suggest a cautious optimism among investors looking to capitalize on potential rebounds.