Emerging markets had a bumper year
Many emerging markets indexes drastically outperformed rivals in developed markets, including the S&P 500.
TL;DR
- Emerging markets stock indexes have surged around 30% in 2025, outperforming developed markets.
- Experts from Ninety One and JP Morgan are bullish on emerging markets for 2026, expecting continued outperformance.
- A weakening U.S. dollar, after 15 years of strength, is a key catalyst for emerging market growth.
- Changes in net issuance, particularly in China, are shifting from a headwind to a potential tailwind for emerging market equities.
- Emerging markets are expected to benefit from increased demand for commodities driven by the global AI boom.
- Latin America is highlighted as an interesting region with potential for conservative policy shifts and investment.
- Greece's benchmark index has surged nearly 44% and will be upgraded to developed market status in September 2026.