Emerging-Markets MSCI ETFs Beat S&P 500 by 14.5 Points as AI Lifts Taiwan and Korea
Updated
Updated · yardeniquicktakes.com · May 31
Emerging-Markets MSCI ETFs Beat S&P 500 by 14.5 Points as AI Lifts Taiwan and Korea
4 articles · Updated · yardeniquicktakes.com · May 31
EEM has climbed 25.4% year to date, outpacing the S&P 500’s 10.9% gain as the “Go Global” trade held up despite the latest Middle East war.
South Korea and Taiwan’s AI-driven rally powered much of that strength, while the EM ex-China fund EMXC surged 39.0%, reinforcing the call to avoid China.
Valuations still favor overseas equities: the US MSCI trades at 21.5 times forward earnings versus 14.2 for ACW ex-US, even as ex-US earnings estimates rise broadly and India surprises on the upside.
Europe, Japan and many emerging markets that import oil could gain further if the Strait of Hormuz reopens, easing one advantage the US held during the conflict as a net petroleum exporter.
With AI's massive power needs, can emerging markets' energy grids support the trillion-dollar infrastructure boom?
As global fragmentation deepens, is a resilient supply chain or regional dominance the winning long-term strategy?
India is called an 'AI-laggard' but its market is cheap. Can it become the next tech powerhouse?