NEW YORK ( TheStreet) -- Emerging markets have underperformed this year relative to fundamentals and on rising risk aversion. However, attractive valuations and recent selloffs could offer higher returns during the second half of 2010.The Shanghai Composite Index has been the worst performer among the major emerging markets, declining around 26% year to date on concerns of government measures to slowdown the economy and the European debt crisis. The current price-to-earnings ratio of 14.9 is the lowest since early 2009 and enhances buying opportunities.
Emerging Markets Set for Higher Returns
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