The renewed struggles of emerging markets caused by the recent wobble in Chinese equities has led some investors and analysts to spot an enticing opportunity to bet that a decade of pain may soon be over.
Emerging stock markets such as Brazil, India, Turkey or South Africa have trailed significantly behind developed markets for much of the past decade, especially compared to runaway US equities.
Blue-chip US stocks have had total returns of 356 per cent over the past 10 years, thumping the 188 per cent return of European equities over the same period, according to Refinitiv data. But emerging markets have done even worse, with the MSCI EM index returning only 66 per cent, leading some analysts to describe it as a “lost decade” for emerging markets.