EM Stocks Extend Lead Over S&P 500 as Trump Rattles US Markets
This article is for subscribers only.
US President Donald Trump’s policy shocks are tilting risk sentiment in favor of emerging-market equities, leading to their biggest outperformance in 16 years over US stocks as investors focus on local growth and earnings.
The MSCI Emerging Markets Index has rebounded almost 8% from a low on April 9, while a selloff in the S&P 500 Index has deepened. This divergence has led to a 14% excess return for EM stocks relative to their US peers this year — the biggest outperformance since 2009.