Developed markets are expected to outperform emerging market equities in 2025, despite the potential for solid returns in the latter.

The fixed income markets are anticipated to become more volatile, and there is expected to be a rebound in deal-making as the year progresses.

Notable emerging economies such as India, Taiwan, Indonesia, and Mexico are seen as promising investment opportunities.

While emerging markets have seen strong economic growth, with an average nominal GDP increase of 4.3% in local currency since 2009, many domestic companies have struggled to convert this growth into profit.

China, for example, has experienced significant economic expansion but has not seen a corresponding increase in earnings over the past decade.

JPMorgan's investment strategy focuses on three key factors: a large private sector, companies with higher earnings per share (EPS) returns, and strong, growing export industries.

India, in particular, has shown impressive earnings growth of 296% in local currency terms from September 2009 to 2024, positioning it as a leader among emerging markets.