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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