Is the “lost decade” of emerging markets finally coming to an end?
Top Wall Street firms like Morgan Stanley, Bank of America, AQR Capital, and Franklin Templeton are turning their attention to developing regions such as Latin America, Asia, and Africa, where they see potential for sustained equity growth.
What’s fueling this renewed optimism?
A weakening U.S. dollar
Doubts about Treasuries as a safe haven
Rising interest in non-U.S. assets amid global uncertainty
Forecasts of 6% annual returns in local currency, outpacing U.S. stocks
Sectors gaining traction include banking, electrification, healthcare, and defense, particularly companies with strong domestic demand.
While emerging markets are not without risks, improving fundamentals—such as lower debt ratios and faster GDP growth—are making them increasingly attractive to long-term investors.
Is this the beginning of a structural capital shift away from U.S. dominance?
The momentum is building—and smart investors are already paying attention.
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