EM Equity Outlook 2026: From Rebound To Rotation
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William Blair844 FollowersFollow5ShareSavePlay(15min)CommentsSummaryEmerging markets (EMs) enter 2026 having moved beyond a simple rebound and into a broader rotation of leadership, quality, and opportunity.A weaker U.S. dollar, strengthening fundamentals, and expanding country and sector breadth have shifted EM equities from a narrow, tech-led recovery to what we believe is a more durable, multi-engine cycle.High-quality companies across semiconductors, power infrastructure, healthcare, and advanced manufacturing are gaining momentum, while capital is rotating toward markets with improving macro conditions and clearer policy direction.Together, these dynamics signal that EM’s comeback is evolving into a more structural re-rating—one where investors can access both global secular themes and a more diversified foundation for long-term potential. AlexSecret/iStock via Getty Images EMs are entering 2026 from a position of renewed strength. A weakening U.S. dollar, improving fundamentals, and broadening country and sector leadership have created a favorable backdrop for investors—and we believe EM equitiesThis article was written byWilliam Blair844 FollowersFollowWilliam Blair is committed to building enduring relationships with our clients and providing expertise and solutions to meet their evolving needs. We work closely with the most sophisticated investors globally across institutional and intermediary channels. We are 100% active-employee-owned with broad-based ownership. Our investment teams are solely focused on active management and employ disciplined, analytical research processes across a wide range of strategies. We are based in Chicago with resources in New York, London, Zurich, Sydney, Stockholm, and The Hague, and dedicated coverage for Canada.