More striking than the US sitting near the bottom of the equ
lionhill
2026-02-20 05:53:29
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More striking than the US sitting near the bottom of the equity league table is why leaders are leading: EM outperformed despite a negative valuation contribution, in sharp contrast to last year.
I can think of a few drivers behind its earnings strength - Al diffusion, a weaker dollar and easier financial conditions, and robust growth impulses and commodity prices.
These support the flow of the marginal dollar, but the bigger question is whether they could sustain a turn from the dramatic EMDM underperformance since 2010. On that, I need to see more evidence, particularly how different EMs align with megaforces.