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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Video

EM Local Currency Bonds: The dog days are over

Alexis de Mones (Portfolio Manager, Local Currency), and Gustavo Medeiros (Ashmore’s Global Head of Research). During this live webinar they discussed the opportunities present in Local Currency Bonds.
Weekly investor research

Another BRICs in the Wall

The BRICS group of countries (Brazil, Russia, India, China and South Africa) announced the inclusion of several other countries. China announced further measures to boost growth (and stock prices). Thailand Parliament elected a new government, led by...
Weekly investor research

Room for fiscal conservatives in October LATAM elections

The US and Chinese economic surprise indices push markets into peak US optimism and peak China pessimism. US Treasury yields continue to rise, driven by real rates, under the twin effects of strong data and large Treasury issuance. China’s economic...
The Emerging View

Rethinking TINA: The Emerging Eight

The role of the human psychological cycle in driving stock and bond prices is well understood and pre-dates behavioural economics. There are elements that suggest we may be going through another period of ‘irrational exuberance’ as several long-term...
Market Commentary

How did the Colombian Peso become this year’s darling?

What is the best performing currency in 2023 so far? Against all odds and biases, the Colombian Peso (COP), which is up 16.8% against the USD year-to-date and 22.8% including the ‘carry’, or the interest rate differential earned by carrying long...
Weekly investor research

EV buyers may be in DM, but its supply chain assets are in EM

The strong performance of equity markets last week was related to the market interpretation of the main central bank decisions, seeing ‘not hawkish’ as ‘dovish’, and confusion over the actions of the Bank of Japan (BOJ). Chinese stocks outperformed on...
The Emerging View

The case for local currency bonds “Si, se puede!”

Believe it or not, Emerging Markets (EM) local currency bonds have been outperforming global fixed income asset classes for the past 18-months. Most of the outperformance has been based on an early and more appropriate hiking cycle from EM central...
Video

'EM in 10' update - July 2023

Gustavo Medeiros, Ashmore’s Head of Research, answers some timely questions with his views about recent events and performance in Emerging Markets for our 'EM in 10' monthly video review.
The Emerging View

India takes centre stage

India has a compelling investment case. Over the last ten years, the MSCI India index has delivered over 135% returns in USD. Over the last three to five years, the same index has delivered 69% and 56% returns respectively, outperforming the MSCI...