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The US's global share is expected to decline from 42% in 2022 to around 35% by 2030 while emerging markets' share will rise to 35% and continue to grow.
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Despite economic challenges, emerging economies are experiencing income convergence and market growth, fueled by the equitization of corporate assets and financial development.
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Developing economies are forecasted to grow at an average pace of 3.8%, outpacing the projected growth of advanced nations at 1.8%, due to favorable demographics and increased productivity.
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While growth projections do not guarantee equity performance, the long-term earnings growth and valuation expansion suggest that emerging-market equities may outperform.
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Wall Street firms like Morgan Stanley and AQR Capital Management recommend reducing exposure to US equities and increasing investments in emerging markets.
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Goldman Sachs projects India's global market cap share to rise from under 3% in 2022 to 8% in 2050, and China's share to increase from 10% to 15%.
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The MSCI emerging markets index has had a gain of less than 4% this year, lagging behind the 14% gain of the US equity market (S&P 500) and the 38% gain of the Nasdaq 100.
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