Emerging markets outperformed developed ones in 2025, driven by a weaker US dollar, stronger relative earnings revisions and improving return on equity (ROE). Corporate governance has also been improving in the region. However, the conflict in Iran has sent oil prices to new highs, sparking inflation risks, strengthening the dollar, and making emerging market assets and oil importers vulnerable.

Nevertheless, Shing is still positive on the outlook for emerging market equities. He noted that despite the conflict and the shift away from US equities in 2025, Europe has still been performing slightly better than the US since January: “Emerging markets and Japan are also still outperforming the US.” 

He is not alone in his views. “Despite recent volatility from geopolitical tensions and higher oil prices, we maintain a constructive outlook on emerging market equities, supported by resilient fundamentals and exposure to structural growth trends like AI and memory demand,” Laura Smith, analyst, and Alejo Czerwonko, chief investment officer for Emerging Markets Americas at , who believes that gold offers a compelling proposition for investors seeking wealth preservation and intergenerational resilience. He views the recent pullback as an opportunity to adjust strategic exposure and tactically position for a recovery.

Yesterday, Mark Haefele, chief investment officer at UBS Global Wealth Management, said that while geopolitical conflicts and market volatility can tempt investors to try to time their market entries and exits, history and statistics show that this approach is fraught with risk: “We maintain the view that staying invested with a well-diversified portfolio is the best way to capture long-term market growth, and investors can consider gold.” See more about the precious metal here.