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.

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The Emerging View

2024 Outlook: Resilience, Tails, and Inflections

Global Macro Summary: Resilience: In 2023, GDP growth surprised to the upside in several Emerging Market (EM) countries and recovered in China. In 2024, EM ex-China should remain supported as the Chinese GDP soft-landing resumes. Developed Market (DM) gro
Weekly investor research

Year-end rally quietens political noise…for now

The year-end rally continued to be very strong with US Treasuries this November recording their strongest monthly performance since 1985. Elsewhere, however, sources of political risk persist. Oil continued to sell off following the OPEC announcement...
Weekly investor research

The narrowing path

A solid November so far for market returns, but the path for an ongoing year-end large rally is narrowing. The respite in geopolitical tensions may also be short-lived. Israel agreed to a four-day cease fire in Gaza until Monday, but its Defence...
Weekly investor research

Libertarian economist Javier Milei is the new President of Argentina

The war in Gaza is imposing an unbearable cost to both human life and the respective economies. Walmart voiced a cautious outlook on the US consumer. China’s Xi Jinping delivered a hopeful message at the APEC forum in San Francisco. Inflation declined...
Weekly investor research

EM policy superiority recognised

Two articles from renowned economists highlighted Emerging Market (EM) policy superiority which has allowed EM local currency bonds to outperform Developed Market (DM) bonds over the last years. Indeed, inflation remained on a declining trend in most...
Weekly investor research

Yields lower, stocks higher… For longer?

A combination of events saw yields drop from elevated levels as stock prices benefited from lower real interest rates. South Korea’s short selling ban led stocks higher but will delay any upgrade to Developed Market (DM) status to 2025.
Weekly investor research

US temporarily removes sanctions on Venezuela

The US suspended for six months the financial sanctions imposed on Venezuelan oil and gas and secondary market trading of Eurobonds. The sanctions release was motivated by the tight supply on oil markets and the large number of Venezuelan immigrants...
Weekly investor research

Elections have consequences

The Israel-Hamas conflict remained the dominant theme in global macro. No major surprises from the IMF meetings in Marrakesh, where countries presented their fiscal and structural reform and several frontier countries worked on debt restructuring...
Video

EM Equity - Ingredients for the next EM upcycle

Dhiren Shah (Lead Portfolio Manager of the Ashmore EM Equity Fund), and Gustavo Medeiros (Ashmore’s Global Head of Research). During this live webinar they discussed the opportunities present in Emerging Market Equity.
Weekly investor research

Hamas Strikes Israel

Israel declared war on Hamas following an organised attack on the country, 50 years after the Yom Kippur War. A Bank of International Settlements (BIS) paper published last week suggests the global supply chain has lengthened since the Covid-19 pandemic.
Weekly investor research

Slippery slope: Will oil keep driving rates higher?

Global oil markets experienced a bullish run towards the USD 100 per barrel level. High oil prices and increased supply of US Treasury (UST) bonds led to a strong sell-off in rates. Chinese economic data was better than consensus before the...
The Emerging View

Solving the Energy Transition paradox in Emerging Markets

The energy transition debate is maturing. The Paris Agreement’s goal of limiting the increase in the global average temperature to 2.0°C, ideally 1.5°C, above pre-industrial levels is imperative to avoid a challenging climate situation.
Weekly investor research

Indian Government Bonds: index inclusion matters

A hawkish dot-plot brought US interest rates higher, but risks are increasing. Disputes over Ukrainian grain exports increased tensions in Eastern Europe. JP Morgan announced it will include India in its Emerging Market (EM) Government bond index...