Can emerging market outperformance continue?

After a dismal decade, the re-emergence of emerging markets (EMs) continues. In the year to the end of March, they outperformed global developed markets by 10 percentage points.

Can this outperformance continue? Synchronised growth throughout the global economy ought to help. When there is a synchronised economic expansion, risk aversion among investors typically falls, leading EMs to outperform. Industry Voice: Casting the widest net in emerging-markets debt This positive economic backdrop has also led to a recovery in profit margins for many EM companies: estimates for earnings growth are being revised higher. Meanwhile, fixed asset investment also remains strong, supporting growth and, in time, productivity.  Yet while there are good reasons to be op...