Emerging market equities soared 16% in USD terms in the first half of the year, outpacing the 6% of the MSCI USA. One key driver was a weaker dollar, which turned currency headwinds into tailwinds and boosted returns for dollar-based investors. Historically, we found that EMs tended to outperform when the dollar declined - a cue for U.S. equity-focused wealth advisers looking to reassess global equity allocations.