A Decade of Pain

Now the setup looks like 2003/A new trade goes on the board.

Let’s be honest—emerging markets haven’t been a great trade for a long time.

Over the past decade, EM stocks have underperformed the U.S. by a wide margin. Valuations looked cheap and growth stories sounded compelling.

But the results were mostly flat.

Every bounce faded and every breakout failed.

So why am I bullish now?

Because the conditions that fuel EM outperformance are lining up again—and this time, they’re hard to ignore.

During the early 2000s, emerging markets significantly outperformed U.S. equities.
The U.S. dollar entered a sustained downtrend and commodities surged. Capital flowed into developing economies with real GDP growth, favorable demographics, and leverage to global trade.

The result were multi bagger(100-600%) returns across Asia, South America, and more.