The Rest of the World Is Running With the Bulls
Led by a weaker dollar and a reopened China, emerging markets are enjoying their biggest rally since 2010. Will it prove sustainable?
The run also rises.
Photographer: Miguel Riopa/AFP/Getty
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There’ve been plenty of false alarms over the last decade, but emerging market stocks are in a rally that looks like it really could end a driving bear slump that has stretched back to 2010. This shows up in many ways. If we compare MSCI’s emerging markets index with its US index, the rally over the last three months now tops 20%. Throughout its long hibernation, it has only once managed a relative rally this strong, in 2016 after fears of a Chinese financial crisis created a buying opportunity. Viewed on a log scale, the low seems to be in: