With shifting dynamics in global markets, and US stocks trading at historical highs, emerging markets appear undervalued in comparison. According to the Buffet indicator, which measures the ratio of stock market capitalisation to gross domestic product (GDP), the US is significantly overvalued at 200%. China on the other hand, is undervalued by this measure at approximately 80% , while Latin America and most Asian countries (with the exception of Taiwan and India), are around 50%. This presents an attractive opportunity to build exposure to emerging markets, especially for long-term investors who are seeking diversification.