A Sign of Things to Come as EM Stocks Begin to Outperform US Counterparts

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Stocks Analysis by James Picerno covering: SPDR® S&P 500, Vanguard Total World Stock Index Fund ETF Shares, Vanguard FTSE Emerging Markets Index Fund ETF Shares, iShares Latin America 40 ETF. Read James Picerno's latest article on Investing.com

You might think that war in the Middle East, heightened geopolitical risk elsewhere, and the potential for turmoil in the upcoming US election would spell trouble for world stock markets.

Today’s news that China is becoming more aggressive in reviving its slowing economy is another factor that’s helping boost the outlook for emerging markets. Emerging markets stocks have underperformed US and developed markets in recent years, putting a dent in previous forecasts that expected returns were higher in these countries. Optimists hope that a turnaround is unfolding.

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