Literature’s second most famous hobbit, Bilbo Baggins, titled his memoirs There and Back Again. In it, he took a long trip down into the terrifying caves of a deep mountain (actually, two mountains) and came back home with a treasure. It is an extremely common literary theme: Down into the pit, and back out of the pit. It's common because good literature mimics real life stories, even financial ones.
Last year we wrote a lot about the history of Emerging Market (EM) overperformance. That historically it tends to overperform developed markets; that it does not always overperform; the conditions under which it does overperform.
In the most recent quarter, global stock markets continued to reverse the valuation compression which occurred in the first quarter.