Emerging markets rally as Federal Reserve signals end to monetary tightening, leading to a surge in developing-nation assets including stocks and sovereign bonds. Goldman Sachs and Morgan Stanley predict double-digit returns for developing-nation sovereign dollar bonds in 2024. Investors remain cautious about China's growth outlook and the Fed's future path, but high-yielding bonds in countries like Argentina, Pakistan, Ukraine, and nearshoring trends in Hungary, Czech Republic, Poland, and Mexico show potential.

Emerging Markets Rally