Value equities continue to trade at a considerable discount to growth stocks in both emerging and developed economies, have outperformed such stocks in inflationary settings, and hence have a sizable upside potential. 

Given that EM values are lower on a price/earnings and price/book basis—both metrics are currently close to their 15-year lows—and have lower risk/reward ratios than their developed market counterparts, it is debatable whether EM stocks provide a better risk/reward profile. 

Additionally, before returning to more typical levels against the US dollar, EM currencies still have a lot of room to rise.

Fundamentals

Finally, despite the volatility in commodity prices, companies that produce commodities, which make up a sizable percentage of the universe of EM value shares, typically still have solid fundamentals. 

First, total cash flow creation is still strong. 

Second, commodity-producing enterprises will probably be forced to maintain discipline in their spending and capital expenditures due to the uncertainty surrounding the global economy.