The World of Emerging Market Investing

The conversation explores the resurgence of emerging markets as a viable investment option, particularly after a strong performance in 2025. The discussion highlights the changing landscape of these markets, the impact of dollar strength on investments, and the significance of the AI supply chain. It also addresses the risks associated with investing in emerging markets and provides insights on asset allocation strategies for investors looking to diversify their portfolios. https://subscribe.arcvest.com/ https://arcvest.com/ Takeaways Emerging markets had a 76% return in 2025, outperforming the S&P 500. For 15 years, emerging markets underperformed compared to U.S. stocks. The narrative around emerging markets is changing, making them more attractive. Emerging markets now have significant exposure to technology and finance sectors. Dollar weakness has historically benefited emerging markets. Investors are moving away from dollar-denominated assets. Emerging markets are currently undervalued compared to U.S. markets. AI supply chains are increasingly important in emerging markets. A diversified portfolio should include 10-11% in emerging markets. Global diversification is essential for modern investors.