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The future may be brighter for EM equities

We think that EM equities will deliver better returns in the next couple of years than they have since the pandemic. Returns are likely to be lower than those we expect from US equities but similar to those from other DM equities. We expect equities in EM Asia to lead the way, and those in Latin America to lag.

In view of the wider interest, we are also sending this Asset Allocation Update to clients of our Emerging Markets Economics service.

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