Investors are getting ready to revisit emerging markets

The MSCI Emerging Markets Index has followed global stocks lower this year, losing nearly a fifth of its value year to date (YTD). After underperforming against world indices in three of the previous four years, emerging market (EM) equities were positioned for a recovery at the start of 2022. At the time, hope stemmed from distressed market valuations and rising Covid-19 vaccine inoculation rates.