Will 2016 Be the Sixth Year of Emerging Market Underperformance?

Emerging markets remain a challenging call principally because of ongoing macro headwinds that suggest little growth improvement for 2016

Andy Brunner 23 December, 2015 | 11:25AM

It has been another very difficult year for emerging market economies, and currencies have naturally been reflected in generally poorly performing equity markets. Indeed, emerging markets have underperformed developed markets by around 14% in dollar terms year to date and for the fifth consecutive year.

There is still scope for downside surprises to growth, debt and currencies, hardly the ideal background for equities

From the peak in October 2010 emerging markets have now declined by nearly 50% compared to developed markets with the relative now back to the levels of 10 year ago.

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About Author

Andy Brunner

Andy Brunner  is Head of Investment Strategy, Morningstar UK

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