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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The Emerging View

Argentina Q&A

Argentina once again finds itself in the grip of financial turmoil.
The Emerging View

The case for EM local currency debt

The establishment of local bond markets has been the single most important structural change in Emerging Markets (EM) in the past quarter of a century.
The Emerging View

The case for EM external debt

The case for Emerging Markets external debt is solid. The long-term risk-reward has been and remains compelling. The outlook over the medium-term also favours the asset class as the unwinding of distortions in global bond markets attributable to Quantitat
The Emerging View

Beware of Big Fiscal

Picture yourself in charge of the government of a rich country.
The Emerging View

The 2019-2023 EM fixed income outlook The Emerging View

Emerging Markets (EM) fixed income should deliver compounded returns ranging from 30% to 60% in Dollar terms over the 2019-2023 investment horizon as markets revert to unwinding the so-called QE trades
The Emerging View

US late cycle dynamics and EM bonds

The recent volatility in US stocks may be a warning that the US business cycle expansion is moving into its late stages.
Market Commentary

Convergence, Big Time

A new study shows strong empirical evidence in favour of Emerging Markets (EM) economic convergence, which is arguably the single most important fundamental rationale for allocating to the EM asset class.
The Emerging View

Déjà vu 2002

The 2018 sell-off in EM local markets is more than a mere conventional ‘buy the dip’ opportunity.
The Emerging View

The EM equity universe: 7 implications of evolution

The size of the Emerging Markets (EM) equity universe is significant. It is evolving quickly and becoming more sophisticated as EM broaden, deepen and liberalise, better reflecting their underlying economic growth drivers.