The opportunity in emerging markets today (Podcast)

Emerging market equities are entering what may be a new multi‑year cycle of outperformance, supported by faster earnings growth, improving revisions, and still-attractive valuations versus US stocks. Structural themes such as infrastructure build-out in Brazil, leadership in memory chips and shipbuilding in Korea, and ongoing domestic demand stories across Asia and the Middle East are creating differentiated return drivers that are less tied to the AI-led rally in US mega caps. While headlines often focus on geopolitical risk or oil shocks, many EM economies have strengthened their resilience, with local fundamentals and policy reforms helping to dampen volatility over time.

For advisors and investors, this backdrop argues for a strategic allocation to EM as both a growth engine and a diversifier within global equity portfolios. Manager selection remains critical: teams that can navigate style rotations and capitalize on earnings revisions across cycles are best positioned to turn these broad macro trends into persistent alpha.