By Gustavo Medeiros, Ben Underhill
The Emerging View

The case for emerging market small cap equities

EM small caps are assumed to be the risky cousin of US small caps. The data says otherwise: nearly nine in ten are profitable, on half the forward multiple of the Russell 2000. We make the case for the asset class.

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Weekly investor research

Oil relief welcome before Wednesday’s FOMC

After 13 consecutive nights of strikes, the US paused its attack on Iran over the weekend, welcome relief ahead of Wednesday's FOMC. Elsewhere, Samsung and SK Hynix signed USD 950bn of US supply deals and Bank Indonesia's governor resigned.
Weekly investor research

The arrival of Kimi K3 tests investors’ faith in Jevons’ Paradox

Chinese open-weight model Kimi K3 raises questions over AI lab monetisation, testing investors’ faith in Jevons’ Paradox. The Korean memory stock unwind extends, US CPI turns negative and the Bank of Korea hikes for the first time in three years.
Weekly investor research

Hormuz hostilities and a memory stock correction

US-Iran hostilities push oil back to nearly USD 80 and Korean memory stocks fall in a positioning unwind. SK Hynix’s ADRs debut on Nasdaq, China’s central bank adds to gold, and Ukraine secures EUR 140bn in weaponry pledges at the Ankara NATO summit.

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Market Commentary

The well-meaning misguided G20 proposal

The recently launched G20 initiative to provide debt relief for poorer Emerging Markets (EM) countries may be well-meaning, but it is also seriously misguided. In particular, the proposal fails on two counts.
Market Commentary

The case for a global macro-prudential policy

The tendency for global capital to flee ‘risky’ EM countries indiscriminately in favour of ‘risk free’ developed markets during outbreaks of global risk aversion is one of the great international market failures of  our time.
Market Commentary

The merits of Ecuador’s approach

Ecuador has put forward a plan for dealing with an unprecedented triple shock of lower oil prices, coronavirus and loss of access to financial markets.
Weekly investor research

The final shock

Lebanon announced a moratorium on its sovereign debt.
Weekly investor research

Volatility and opportunity

Ecuadorian bonds experienced considerable price volatility due to inaccurate journalism.