STOCKS | Morgan Stanley: Emerging-Market Pullback Creates Entry Opportunity

Morgan Stanley believes the pullback in emerging-market stocks may create an attractive entry point for a rally from year-end through 2027. According to Sina Finance, strategists Jonathan Garner, Daniel Blake and Ji Jing wrote in a research note that the MSCI Emerging Markets Index has fallen about 12% from recent highs, less than its declines of 14% in March and 13% in July, while current valuations are below levels at the previous two troughs. They said they are not yet bullish but consider the current correction sufficient. Markets have priced in considerable skepticism about whether the current earnings cycle can continue, but uncertainties remain, including the outcome of the U.S. midterm elections and the situation in the Middle East.