December 17, 2025 | Global Equity

EM Equity Outlook 2026: From Rebound to Rotation

Portfolio Manager

Emerging markets (EMs) enter 2026 having moved beyond a simple rebound and into a broader rotation of leadership, quality, and opportunity. A weaker U.S. dollar, strengthening fundamentals, and expanding country and sector breadth have shifted EM equities from a narrow, tech-led recovery to what we believe is a more durable, multi-engine cycle. High-quality companies across semiconductors, power infrastructure, healthcare, and advanced manufacturing are gaining momentum, while capital is rotating toward markets with improving macro conditions and clearer policy direction. Together, these dynamics signal that EM’s comeback appears to be evolving into a more structural re-rating—one where investors can access both global secular themes and a more diversified foundation for long-term potential.

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