Have the stars aligned for EM equities?

Newton explains why the year ahead looks promising for emerging market equities. There are a combination of structural and cyclical factors aligning for outperformance of emerging markets in the year ahead. Companies in the region are showing strong balance sheets and resilient management in a challenging macroeconomic environment. Emerging market businesses have more experience operating in an inflationary environment than those in developed markets. Automation and financial inclusion are two themes offering interesting opportunities in the year ahead.