Emerging-Market Stocks Suffer Double Whammy: EM Insight

The video discusses the challenges faced by emerging markets, which have underperformed compared to developed markets. Despite this, their valuations have increased, indicating rising risks rather than opportunities. A key issue is the decline in corporate earnings across emerging markets, exacerbated by the trade war, particularly affecting Chinese companies. Analysts have also lowered earnings estimates, further impacting market recovery.

What has been the performance trend of emerging market stocks compared to developed markets over the last 12 months?

What are the main factors contributing to the underperformance of emerging market stocks?

How have earnings estimates for emerging market companies changed in the last 12 months?

What impact has the trade war had on emerging markets according to the text?

What does the increase in valuations of emerging markets signify according to the discussion?