Macro View: The Emerging Markets Growth Premium

28 days ago

Thomas Hughes

"The S&P 500 is finishing 2025 on a high note, but there are other emerging markets that had an even better year. Emerging markets tend to be riskier because they are emerging and they have less established economies, but they tend to grow faster. They grew faster than global GDP in 2025 and they're expected to grow faster in 2026. As their economies develop and the middle class grows, they have more and more disposable income to buy things, which is just creating more commerce. E-commerce is going to take share versus regular commerce and that's going to drive gains throughout the ecosystem emerging markets and developed markets."

The macro commentary emphasizes the high growth potential of emerging markets driven by rapid digitization, expanding middle class, and robust consumer demand. The analyst contrasts these gains with the S&P 500's performance, underscoring emerging markets as a compelling diversification play for 2026.

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