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Emerging Markets Outlook: Has the Asset Class Finally Turned a Corner?

Emerging‑market equities have finally outpaced U.S. stocks, delivering their widest performance gap in years after a decade‑plus of under‑performance. The Wealth Enterprise Briefing attributes the shift to stronger balance sheets, improved profitability and accelerating earnings momentum. The composition of the EM index is now led by India, South Korea and Taiwan rather than China, reflecting a broader Asian exposure. Analysts caution that while the Iran conflict adds short‑term energy risk, valuations remain compelling relative to U.S. equities.