Morgan Stanley believes that the pullback in emerging market stocks may have created an attractive time to enter the market from the end of the year to 2027. Strategists Jonathan Garner, Daniel Blake, and Ji Jing wrote in the research report that the Morgan Stanley Capital International Emerging Markets Index fell about 12% from its recent high, slightly less than 14% in March and 13% in July; the current valuation level of emerging markets is lower than the low of the previous two rounds. They said, “We haven't turned bullish yet, but I think this round of pullback is enough.”

Morgan Stanley believes that the pullback in emerging market stocks may have created an attractive time to enter the market from the end of the year to 2027. Strategists Jonathan Garner, Daniel Blake, and Ji Jing wrote in the research report that the Morgan Stanley Capital International Emerging Markets Index fell about 12% from its recent high, slightly less than 14% in March and 13% in July; the current valuation level of emerging markets is lower than the low of the previous two rounds. They said, “We haven't turned bullish yet, but I think this round of pullback is enough.”