
The second best performing segment of the emerging markets has been the growth counter-cyclical basket of stocks, comprised of health care and consumer staple companies. As shown in the chart below, these stocks have outperformed the MSCI EM index by 54% over the last five years.

The market reaction in the emerging markets today after the Fed meeting yesterday suggests investors are turning away from the early cyclical group of companies and turning toward the counter-cyclical areas. Today, as shown in the table below, EM health care stocks are leading the performance table, up .7% while EM early cylicals are the worst performing group, down 1.7%.
