Long-term outlook positive as EM growth betters Western economy

Global emerging markets have had a stunning run since late March.

The MSCI Emerging Markets Index is up by 46.3% in sterling terms in the six months to 30 September. Correlations between  emerging markets and global risk-taking have proved as high as ever, suggesting decoupling of emerging markets remains unlikely. Having said this, China’s strong economic performance and the robustness of many developing world consumers to the credit crunch have demonstrated the long-term investment case is intact. Given recent rises, we have a number of concerns about the short-term outlook for emerging markets. Having rallied very strongly, markets are no longer ...