Move over bonds. It is stocks' turn in spotlight of emerging markets

Bonds have been the most profitable asset class in emerging markets over the past decade, beating stocks in volatility-adjusted returns almost every year except 2017

Stocks are edging out bonds as the choice of 2021 in emerging markets.

The world’s biggest money managers, from BlackRock to JPMorgan and UBS, are betting the post-pandemic economic recovery will be so swift that it’s no longer necessary to be content with the single-digit yields of developing-nation debt. Equities will offer much higher returns in 2021, they say, in a signal that a decade of underperformance may come to an end.

If fund flows are any indication, the rush into equities has already begun. A risk-on shift brought about by Joe Biden’s U.S. election victory and coronavirus vaccine successes has