Looking ahead, Shearing argues that emerging markets could outperform, but investors should still temper their expectations as he expects modest gains of about 5% to 6% over the next year or so, which is still better than the U.S. outlook.
“In relationship to developed markets, the big period of underperformance may well now have happened,” Shearing added.
Vanguard FTSE Emerging Markets ETF
For more information on the developing economies, visit our emerging markets category.
Max Chen contributed to this article.