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EM equities’ underperformance likely to slow in 2020

EM equities have managed to keep pace with US equities since late 2019 after a long period of underperformance (see Chart 1), as global economic data have stabilised and the US and China struck a trade deal. While we don’t expect a reversal of the marked underperformance of EM equities in 2020, we think that it will broadly end.

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