Surprisingly resilient emerging markets defy strong dollar

This should be a horrible environment for emerging markets. The dollar is high, investors are risk averse and global inflationary pressures hit weaker economies harder. However, in the current volatility, emerging markets have fallen less than developed markets. What is behind this apparent anomaly?

The MSCI emerging markets index is down 17.63% for the year to June, compared to a drop of 20.51% for the MSCI World. This surprising ‘outperformance’ has mostly come over the last three months, propelled by a resurgence in China, which has started to peak investor interest once again.

Fidelity Emerging Markets Limited (LON:FEML) is an investment trust that aims to achieve long-term capital growth from an actively managed portfolio made up primarily of securities and financial instruments providing exposure to emerging markets companies, both listed and unlisted.

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