Deep Dive: Signs of relief for EM equities despite looming growth slowdown

Wide returns dispersion across economies

With China reopening and peak US interest rates now in sight, emerging market equities offer attractive entry points heading into 2023. However, a global economic slowdown means investors should be very selective, analysts told Investment Week.

2022 was undoubtedly a difficult year for equities, with emerging markets lying among those in the red. In the year to the end of November 2022, the MSCI Emerging Markets index was down 17.4%, while the MSCI World index lost 10.9%. However, Carly Moorhouse, fund research analyst at Quilter Cheviot, noted that EM equities suffered to a much lower degree than they have in similar market conditions. Four graphs explaining...