Europe. Not exactly the first name that pops into investors’ minds when they think “market leadership,” is it? For much of the last decade, it’s played the quiet understudy while the US tech scene hogged centre stage. But here in 2025?
Let’s face it — small caps haven’t had it easy. While mega-cap tech stocks were busy driving the S&P 500 to all-time highs, smaller companies were stuck playing second fiddle. Since 2015, the Russell 2000 has delivered less than half the gains of its large-cap counterpart.
For most of 2024, tech stocks dominated headlines and investor attention. But in 2025, something unexpected happened: oil stocks quietly took the lead.
Back in 2022, the US central bank – the Federal Reserve – began raising interest rates quickly to fight inflation. Rates went from nearly 0% to over 5% in just over a year.
Interest in the Emerging Market (EM) region has increased in 2025. Their valuations remain low, but recent growth trends and external risks (like currency instability) have shifted the perspective. We analyse the fundamentals, examine current economic indicators, and determine if EMs represent genuine undervalued opportunities or potential pitfalls.
