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Why Wells Fargo expects the emerging-markets outperformance to reverse - MarketWatch

1. Emerging markets have outperformed S&P 500, but trend may reverse. 2. Wells Fargo analyst expects EEM to lag behind U.S. markets in 2025. 3. Historically, emerging markets perform well during dollar weakness. 4. Political instability and economic issues reduced EEM performance over 18 years. 5. Recommendations suggest trimming exposure to EEM in favor of developed markets.

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FAQ

Why Bearish?

The report suggests a reversal in EEM's current outperformance due to potential dollar strength and economic instability.

How important is it?

The analysis highlights significant concerns affecting EEM that could lead to decreased investment interest.

Why Long Term?

The long-term recommendation to reduce exposure indicates persisting issues facing EEM.

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