- Going into 2021, we believe vaccination success on top of a benign cocktail of low rates, low inflation and ample liquidity may create a favorable atmosphere for emerging markets.
- At a minimum, we believe style and emphasis change in China/U.S. relations will help headline risk for the asset class.
- Acceleration of digital trends should maintain momentum, but performance may broaden out into a wider landscape of smaller companies and countries, creating potential compelling stock specific opportunities for the true all-cap VanEck Emerging Markets Equity Strategy.
- As COVID-19 unfolded, significant market turbulence disproportionately affected small- and mid-cap stocks in emerging markets, as is often the case in times of heightened risk. As markets normalize, we believe it is reasonable to expect relative outperformance from these smaller stocks.
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