Emerging Markets Outpace Developed Markets in July

Some emerging markets have been coping with the COVID-19 crisis better than others, and their economies are in different stages of recovery. Our emerging markets equity team highlights a few—and offers thoughts on why the pandemic has accelerated some existing fundamental and technological trends. A collapse in economic activity amid the COVID-19 pandemic and expectations of slowing loan growth, falling margins and rising bad debts have hurt near-term earnings forecasts for Brazilian financials.