By Debbie Carlson
It’s been a tough decade to be an emerging-markets investor, as this sector has underperformed the S&P 500 since 2010.
But market watchers say after 10 years of lagging the U.S., emerging markets may finally be ready for prime time as valuations and a rebounding global economy could help the sector.
Marcelo Carvalho, head of global emerging market research at BNP Paribas, says although emerging markets still face several risks in the coming months, 2021 could be “a sweet spot” for these countries.
BNP Paribas, along with several other economic forecasters, say much of their 2021 outlook is based on effective and safe vaccines. So far several companies, including Pfizer, Moderna and AstraZeneca have announced 90%-plus efficacy in late-stage vaccine trials. It’s a sentiment that’s lifting all markets, including emerging markets, says Pat O’Hare, chief market analyst at Briefing.com.
“There’s welling up of expectations that you’re