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Value's Strong Run In Emerging Markets - Seeking Alpha

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The value factor continues to outperform in emerging markets (EM). In contrast, value’s victory lap in developed markets (DM) in 2022 ended with the growth factor taking back control in 2023. This is largely due to the market expecting an earlier Federal Reserve (Fed) pivot, owing to falling inflation, the banking crisis, and further signs of an economic slowdown. As a result, investors rotated out of low-duration value sectors into high-duration growth sectors as future interest rate expectations were lowered, making growth appear attractive again.

seekingalpha.com     May 07, 2023