Higher U.S. interest rates and a strong dollar may challenge emerging markets (EMs) currencies and sentiment in 2025, and the recent U.S. election has introduced a new layer of uncertainty to these markets. But diverse secular growth drivers and competitive valuations offer a compelling case for investing in EMs. So, while obstacles exist, we believe the underlying case for EMs remains strong, especially for those who are selective about where they invest—and in this paper we explore three key themes that highlight the breadth of opportunity in the asset class.
