As reflected by EEM ( quote ), the emerging world has lagged the S&P 500 by a substantial margin, down 1% year to date compared to a climb of 6.5% in the SPX ( quote ). First, what we know is that the year to date has really been two separate periods when the institutional funds were underweight emerging markets: January 15 through the end of February, and then April 15 to now. Now there are signs of a similar cycle emerging as global growth expectations get weaker, inflation fears recede and risk appetites rise.