Why 2025 might be the year for emerging markets
Key takeaways
• Emerging markets (EM) may see a continuation of a relatively strong earnings trend in 2025, especially versus developed international markets.
• Near the end of 2024, emerging markets traded at one of the lowest forward price-to-earnings differentials relative to the S&P 500 index in the past 20 years.
• Several economic drivers in China that have hurt emerging-market equity returns in recent years could inflect positively, either helping EM stocks or no longer holding them back.
• Emerging-market stocks appear likely to face specific challenges under a Trump administration, especially related to possible tariffs, although several fundamental factors may be more favorable than in the first Trump administration.
More from Fidelity Institutional
The most important insight of the day
Get the Harvest Daily Digest newsletter.
