Macro Play on Emerging Markets for Long-Term Growth

29 days ago

"Good day fellow value investors. We continue with our asset class overview for 2026. And today we'll discuss the cheaper stock markets out there emerging markets. Apart from being the cheaper, there is also 4.5 billion people just in Asia still at a low level of economic development compared to the US and Europe. Therefore, growing at 5% per year. So, you have growth, population, youth, low valuation. What else do you want when it comes to investing? You should sell whatever and buy emerging markets. However, that story has been there for the last two decades and only those that invested in 2003 when I started and I rode this train that was great have made true money."

The speaker presents a macro commentary advocating for a shift towards emerging markets due to their low valuations and strong growth potential driven by demographics and economic fundamentals, despite risks such as high fees and geopolitical uncertainties. The commentary suggests that while the call to buy emerging markets is rooted in long-term growth prospects, historical performance has varied significantly for different entry points.

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