Lazard – On Emerging Markets, 1Q 2024

Lazard's analysis of emerging markets (EM) equities shows that they are undervalued and offer high earnings growth and financial productivity. Despite risks, EM economic growth is on the rise, driven by more than just China. Lazard is optimistic about EM debt due to favorable policy trends. As EM countries improve policies, investors are expected to return in 2024, potentially attracting at least half of the funds that left in recent years. The MSCI Emerging Markets Index fell at the beginning of 2024 due to concerns about higher US interest rates, but performance improved in February and March. Developed markets outperformed EM, with the S&P 500 and MSCI World Index finishing higher. This performance was driven by AI-related optimism and technology-heavy markets like Taiwan and South Korea.