Global X 2026 Outlook - 10 In EM: Back To Basics
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Global X ETFs3.57K FollowersFollow5ShareSavePlay(19min)SummaryThe AI ecosystem is likely to remain a compelling investment given the expected impact of automation across the economy.The stars may be aligning for EM assets due to a potential combination of a weaker or steady U.S. dollar, accommodative monetary policy, strength in China, and low investor positioning in EM securities.If margins were mean-reverting and multiple improvements unsustainable, expectations for future growth would be propping up the market.The Emerging Market universe is large and diverse, and we also see potential opportunities in Greece, Colombia, EM bonds, and commodities. tum3123/iStock via Getty Images International Allocations Emerging Markets (EM) appear poised to enter 2026 with the right mix of ingredients for a potentially positive cycle. These include a weaker or steady U.S. dollar, increased liquidity in the financial system, strength in China, andThis article was written byGlobal X ETFs3.57K FollowersFollowFounded in 2008, Global X is a sponsor of exchange-traded funds (ETFs). We are distinguished by our Thematic Growth, Income, and International ETFs. Explore our insights on the trends and themes shaping global markets – from technology to commodities to emerging economies – at globalxfunds.com/research. Global X ETFs is a member of the Mirae Asset Global Investments Group. Important disclosures: globalxfunds.com/privacyQuick InsightsHow does Brazil's monetary policy outlook impact equity valuations into 2026?With rate cuts expected in Q1 2026 and real rates among the world's highest, Brazilian equities could benefit from margin expansion, carry trades, and a historical average rally of +95% during cutting cycles.What are the key catalysts for Argentina's potential multi-year re-rating?Argentina's credible policy reforms, easing FX controls, FDI inflows, and possible MSCI EM re-inclusion, combined with cheap 8.5x forward earnings, create an asymmetric opportunity for institutional re-engagement.How does Southeast Asia's role in global supply chains affect its investment thesis?Southeast Asia benefits from 'friendshoring,' record FDI in semiconductors and rare earths, and diversified economic drivers, positioning the region for structural growth and multi-sector exposure.Recommended For You