Emerging markets discount relative to developed markets increased in July as trade woes persisted. ​​​

Emerging markets advanced in response to favorable comments about inflation from central bankers and optimism about trade tensions.​ ​

Equity markets continued to decline in May as trade tensions remained at the forefront of global economic challenges.​ ​

​Emerging markets equities continued to rally in April as trade discussions between China and the U.S.​​​​ prog​ressed.​ 

​A dovish Federal Reserve and equity gains in Asia ex-Japan supported emerging markets performance in March.​ ​ ​

​Concerns about U.S.-China trade tension moderated and the central bank of India cut interest rates but emerging markets were virtually flat in February after rallying in January. ​

​Emerging markets generated strong gains in January and outperformed developed markets.​​

Emerging market equities outperformed in December but their valuations continue to look attractive relative to developed markets.​

​Federal Reserve policy, declining Treasury yields and moderating concerns about U.S.-China trade drive emerging markets outperformance.​​​

​Rising interest rates in the U.S. and global trade uncertainties contributed to the negative return of emerging markets in October. We believe emerging markets equities remain attractively valued after a volatile month.​​​

​Concerns about global trade and tariffs lingered during September but currencies stabilized.​​

​Emerging markets valuations continue to look attractive following volatility resulting from trade concerns and deteriorating conditions in Turkey and Argentina.​

​​Investor sentiment improved marginally during the month as crude prices declined, uncertainties around global trade moderated and emerging markets currencies held relatively steady with the exception of the Turkish lira.​​

​Concerns about weakening global trade, higher crude oil prices, and currency depreciation extended pressure on emerging markets equities in June. At the end of the month, however, emerging markets equities were attractively valued relative to developed markets equities​

​Concerns regarding global trade helped drive equity losses around the globe, while a summit between North Korean leader Kim Jong Un and President Donald Trump went forward after a prior meeting had been cancelled. ​​

​Geopolitics dominated emerging markets, driving volatility but valuations remain attractive. On a positive note, North Korean leader Kim Jong Un crossed the demilitarized zone in a historic summit with South Korea. ​​

​​The global equity selloff continued in March, but emerging markets outperformed developed markets. In this blog, Emerging Markets Portfolio Manager Deborah Vélez Medenica, identifies developments that drove market volatility and explains why emerging markets equities have potential to generate gains over the long term.​​

​A global selloff in equities resulted in the MSCI Emerging Markets Index registering a loss for the month of February. Alger Emerging Markets Portfolio Manager Deborah Vélez Medenica, CFA, however, maintains that a combination of global economic growth and attractive valuations continues to make emerging markets equities appealing. ​

The MSCI Emerging Markets Index generated a strong 8.34% gain in January and substantially outperformed the 4.67% return of international developed markets as measured by the MSCI World Index. Emerging markets performance was driven by a strengthening global growth backdrop. Investors, furthermore, continued to anticipate that growth in 2018 will exceed that of 2017.