The Globe and Mail reports in its Thursday edition that emerging markets are enjoying a surprise rally this year, with MSCI's 47-country index up 17 per cent, outpacing the S&P 500. A Reuters dispatch to The Globe reports that most major EM currencies have seen double-digit gains, and the International Monetary Fund has upgraded growth forecasts. A 10-per-cent decline in the greenback from January to June has boosted these markets, similar to its 8-per-cent drop during President Donald Trump's first term. However, July marks the dollar's first monthly increase, and the "Magnificent Seven" have outperformed EM, rising nearly twice as much since Mr. Trump's tariff announcement on April 2. "It is almost as if we are watching the same movie as 2017," said Chatham House's David Lubin, referring to Mr. Trump's first term in charge. "The first year is a weak dollar environment, which is the kind of macro backdrop that suits emerging markets," Mr. Lubin said, explaining that only after that did things turn difficult. With multitrillion-dollar money managers like BlackRock, PIMCO and sovereign wealth funds all now upbeat, analysts at Bank of America believe buying EM is now such a "consensus" trade that it is almost a worry.