Global earnings power is finally spreading beyond the Mag 7, so buy emerging market equities to capture their projected 50-55% earnings growth in 2026.
Emerging markets and value stocks outperform as money rotates out of an overvalued US growth market.
The 2026 emerging market boom thesis completely collapsed as investors realize all true AI innovation lives in the US and repatriate their capital.
Bear-flattening + strong dollar squeezes broad EM as capital rotates hard into US AI semis
Non-US markets, LATAM and China, set to lead as positioning got rinsed and dollar weakens
Money flees emerging markets back to a safe-haven America, so broad EM equities sell off as flows reverse.
US software dominance fades as AI commoditizes it, rotating capital into hardware-heavy emerging markets.