EM in Perspective: See attached graph and you can see that the MSCI EM (benchmark for EM equity) has annualized at 7.44% a year in the last decade.
This is a period that has obviously included the financial crisis and fallout of the global economy, but also included the gold rush period for EM (which arguably began in Jan. 2003 and would have delivered a 10.6% annualized yield).
During this time the SPX has annualized at 4.53%. So while the SPX has underperformed significantly on a 10 year look back, it has dominated unlike any other period in the last 27 months vs. EM outperforming by 47% since Oct 2010.
What does this say? EM is currently very oversold by many measures yet remains the better investment, and reversion to the mean is a law of physics that must be obeyed.