Pimco Adviser Doubles Down on Emerging-Market `Trade of Decade'By
The party might be just be starting for emerging-market equities even after an 82 percent jump in two years.
Research Affiliates, a sub-adviser to money managers including Pacific Investment Management Co., says developing-nation stocks will produce annual average real returns of 6 percent during the next decade, surpassing every other asset class.
If that sounds familiar, it should: These are the same folks who predicted back in February of 2016 that emerging markets would be the "trade of a decade."
Other asset classes expected to outperform include a European leveraged buyout strategy, an index of developed-market equities from Europe, Australasia, Israel and Asia as well as emerging-market local bonds.