Emerging Markets Lens: Equity

Emerging Market (EM) equities fell -20% in US dollar terms in 2022, the weakest calendar year performance since 2008. EMEA was the weakest region, while various Asian EM, including China, lagged the index. Conversely, commodity-producing Latin American and Middle Eastern markets outperformed. – After the Q4 rally, and downward revisions to 2023 earnings expectations, EM equities as a whole have moved close to the historical median on a forward price-earnings and price-book basis. On a dividend yield basis, EM remains cheap versus history.