Unlock Value in Emerging Markets With a Fundamental Approach

Research Affiliates’ mid-year recap flags that U.S. mega-cap dominance combined with extreme valuations is prompting investors to shift toward international assets, especially emerging markets (EM). The article emphasizes widening divergence across global markets, implying a more cautious positioning away from stretched U.S. valuations and toward EM exposure. No specific performance figures or capital flows are provided, but the recommendation backdrop could influence relative asset allocation.