Will submerging economies rise again?

Emerging markets have struggled to make gains this year compared to their developed-market peers. But hope could be on the horizon.

This year has been a bad one for emerging-market (EM) assets, say Christian Keller and Koon Chow of Barclays. At their mid-summer lows, EM shares as measured by the MSCI Emerging Markets Index had fallen by around 17% in US dollar terms since the beginning of January.

While subsequent months saw a partial recovery, "investors have generally remained sceptical" and markets have certainly not recovered all their losses. The MSCI Emerging Markets Index is on course to finish the year down by around 6%, compared with a 19% gain for developed markets.

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