They aren’t called emerging markets for nothing.

Emerging market equities are booming, and for investors, it raises a familiar question: Is this the time to double down on developing economies? The MSCI Emerging Markets Index, a compendium of stocks in 25 of the fastest-growing countries, is expected to grow 15% in the next year, and analysts predict a 10-year annualized return of 11% for emerging market stocks, according to Paul Arnold, global head of multi-asset research at Morningstar. Some noteworthy markets include Latin America, which had a 10-year return of 12.3%, led by Brazil, he added. China, which holds more than a quarter of the MSCI Emerging Markets Index, also rallied in 2024. But Arnold said caution is…