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Goldman, BofA See Lost Decade Over for Emerging Markets

  • Demand for commodities, earnings outlook ignite bullish bets
  • As vaccine rollouts pick up, EM equities seen catching up
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May Be Too Premature to Jump Into EM: StanChart’s Robertsen
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Expectations for a recovery in commodity prices and earnings growth are igniting bullish bets on emerging-market equities after more than a decade of underperformance that left them approaching a 20-year low against developed-nation stocks.

Goldman Sachs Group Inc., Bank of America Corp. and Lazard Asset Management expect a boost for developing equities as investors capitalize on cheap valuations once vaccine rollouts pick up, helping the global economy to recover from the pandemic. South Africa, Russia and Brazil are among markets set to benefit, even as China’s regulatory crackdown continues to weigh on Asian equities.