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Adam Fayed Forum

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Is now the time to buy emerging markets?

As per the analysis on portfolio visualiser emerging markets haven't beaten developed ones, and especially US ones - https://www.portfoliovisualizer.com. Whilst US stock markets have averaged 10% per year if dividends have been reinvested, emerging have done about 6%.

Added to that, the worst years have been worse than developed markets (-52% vs -37%). So, emerging markets are more volatile, for lower long-term returns.

Yet the question is will this continue in the future? We can't know. I do think after 12 years of bad performance, emerging markets look cheap on a p/e basis compared to developed markets, so could have a good decade to come.