The time seems to have come to consider allocating to Emerging Markets here, I am thinking of entering a position today. India and Mexico are set to benefit from decentralization of supply chains, China is about to get stimulus to consumption from govt, and AI is generally a source of growth and higher efficiency for the world going forward (solves the issue with demographics deteriorating). Oil has fallen enough to create a long term tailwind to earnings going forward and demand destruction from it being too high is out of the way (its effects were felt in a recession that took place, combined with CB actions causing further damage.)
Now the Fed has to reverse course, as a bonus, and China credit growth is accelerating again (after being negative for a good while)
I would secure some gains in healthcare to get an Emerging Markets allocation, I had a big position in the top profitable healthcare names as a defensive bet, but AI changes many long term levers here. I do like the idea of trading healthcare actively though, but Emerging Markets seems like a better proposition now and healthcare names are over extended (like
LLY
,
TMO
,
WST
, etc.)
Many valuations are very attractive in Asia currently, and technical setups are getting traction. It's go time.
Best of luck!
Cheers,
Ivan Labrie.
Now the Fed has to reverse course, as a bonus, and China credit growth is accelerating again (after being negative for a good while)
I would secure some gains in healthcare to get an Emerging Markets allocation, I had a big position in the top profitable healthcare names as a defensive bet, but AI changes many long term levers here. I do like the idea of trading healthcare actively though, but Emerging Markets seems like a better proposition now and healthcare names are over extended (like
LLY
,
TMO
,
WST
, etc.) Many valuations are very attractive in Asia currently, and technical setups are getting traction. It's go time.
Best of luck!
Cheers,
Ivan Labrie.