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Fastest Emerging-Market Rotation in a Decade Seen Far From Over

  • Value stocks in EM are beating growth ones by most since 2008
  • Mobius sees unpopular markets catching up with North Asia
Updated on

Emerging-market investors are switching to value stocks and away from growth ones at the fastest pace in more than a decade, and some say the trend may last up to another 12 months.

The rotation trade triggered by progress toward a coronavirus vaccine and the U.S. election will favor equities in countries such as Mexico and Indonesia over places like China and Taiwan, according to AMP Capital Investors. Eastspring Investments is betting on South Africa where shares have lagged behind their peers this year, while UBS Wealth Management says the switch toward value may last for up to a year.