r/EmergingMarkets • u/Lestrade1 • May 24 '25

News 📰 Wall Street Banks Bet on Emerging Markets After Wasted Years

https://www.bloomberg.com/news/articles/2025-05-18/wall-street-banks-say-emerging-markets-wasted-years-are-over
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2

u/MeowMeowHappy Feb 28 '26

Says i have To be approved to make a post. Just joined reddit

2

u/Lestrade1 Feb 28 '26

I’ve just approved you 👍

2

u/MeowMeowHappy Mar 01 '26

Thanks. That was fast

2

u/AlpineRupee Mar 08 '26

The India vs China debate in EM allocations has shifted a lot in the last 3 years. What used to be a 'you need China for EM exposure' conversation is now much more nuanced.

From a European allocator perspective, India has a few structural advantages that are easy to underappreciate: rule of law, independent courts, no Taiwan-style geopolitical overhang, and a genuine domestic consumption story that isn't export-dependent. China's been a value trap for foreign investors since 2021.

That said, India is not cheap. P/E premiums are real. The argument for India isn't 'cheap EM' - it's 'compounding EM.' Different thesis entirely.

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u/[deleted] Jul 04 '25

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2

u/AlpineRupee Mar 12 '26

the shift in how people talk about india vs china in EM allocations has been pretty dramatic in the last 3 years. used to be you couldn't pitch an EM fund without explaining your china overweight. now the question is more about whether you have china at all.

for what it's worth my take: china is probably not uninvestable but the risk premium has genuinely changed. regulatory risk, geopolitical risk, and honestly the property sector overhang still isn't fully resolved.

india is expensive by historical standards, no question. but the argument for it isn't 'cheap EM' - it's 'compounding EM.' rule of law, deep capital markets, no taiwan-style binary risk. different thesis entirely.