As Market Turbulence Returns, Emerging Stocks May Become Haven
- Developing-nation equities lead volatility-adjusted returns
- With bond selloff deepenening, stocks are proving safer bet
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Emerging-market stocks may be one of the safest places to ride out the coming storm.
As 2018 brings back wilder swings to markets, developing-nation equities are beating other asset classes from U.S. stocks to gold, bonds and commodities when returns are adjusted for volatility. This despite a more-than-40 percent increase in emerging-market price turbulence this year, and a weekly loss that matched the worst since the election of Donald Trump.