Emerging Markets Stocks: A Safe Haven for Investors Amid AI Trade Volatility
January 12, 2026
Article
As the global financial landscape continues to be shaped by the rise of artificial intelligence (AI) technology, investors are turning to emerging markets stocks as a safe haven amidst the volatility. According to Goldman Sachs Research, emerging-market stocks are on track for their best annual performance in eight years, with a projected return of roughly 16% in 2026.
This optimism is supported by recent data, which shows that an ETF tracking the MSCI Emerging Markets Index is set to outperform the S&P 500 by the widest margin since 2017. The MSCI Factor Box, powered by MSCI FaCS, offers a visualization tool that allows investors to compare absolute exposures of funds/indexes and their benchmarks.
Despite underperforming developed markets and the S&P 500 for the past 15 years, emerging markets stocks are showing signs of entering a multi-year outperformance cycle. This trend is reflected in the top-performing equity market of 2025, where emerging markets saw a return of 34.4% in dollar terms.
As investors look ahead to 2026, it is essential to consider key themes shaping investment directions. Growth stocks have outperformed in the US, while value stocks have shown promise in emerging markets. The FTSE EPRA/Nareit Global Real Estate Index, which tracks the performance of listed real estate companies, offers opportunities for diversification.
Weekly market commentary from BlackRock Investment Institute and J.P. Morgan Asset Management provide valuable insights for investors looking to navigate the ever-changing financial landscape. These reports highlight the importance of staying informed and making strategic decisions based on market trends.
For a comprehensive outlook on the stock market, weekly trader's stock market outlook and stock market dashboard offer up-to-date information on market trends and insights for informed decision-making. By tracking metrics and trends, investors can make sound investment decisions and capitalize on emerging opportunities.
In conclusion, emerging markets stocks offer a compelling investment opportunity for investors seeking to balance volatility in the AI trade. With a strong performance outlook and potential for multi-year outperformance, emerging markets may be a safe haven for investors looking to diversify their portfolios and capitalize on global market trends.
This optimism is supported by recent data, which shows that an ETF tracking the MSCI Emerging Markets Index is set to outperform the S&P 500 by the widest margin since 2017. The MSCI Factor Box, powered by MSCI FaCS, offers a visualization tool that allows investors to compare absolute exposures of funds/indexes and their benchmarks.
Despite underperforming developed markets and the S&P 500 for the past 15 years, emerging markets stocks are showing signs of entering a multi-year outperformance cycle. This trend is reflected in the top-performing equity market of 2025, where emerging markets saw a return of 34.4% in dollar terms.
As investors look ahead to 2026, it is essential to consider key themes shaping investment directions. Growth stocks have outperformed in the US, while value stocks have shown promise in emerging markets. The FTSE EPRA/Nareit Global Real Estate Index, which tracks the performance of listed real estate companies, offers opportunities for diversification.
Weekly market commentary from BlackRock Investment Institute and J.P. Morgan Asset Management provide valuable insights for investors looking to navigate the ever-changing financial landscape. These reports highlight the importance of staying informed and making strategic decisions based on market trends.
For a comprehensive outlook on the stock market, weekly trader's stock market outlook and stock market dashboard offer up-to-date information on market trends and insights for informed decision-making. By tracking metrics and trends, investors can make sound investment decisions and capitalize on emerging opportunities.
In conclusion, emerging markets stocks offer a compelling investment opportunity for investors seeking to balance volatility in the AI trade. With a strong performance outlook and potential for multi-year outperformance, emerging markets may be a safe haven for investors looking to diversify their portfolios and capitalize on global market trends.