00:00Yeah, that's what they're thinking. And it's not just on the valuations, which obviously have been talked about a lot in the last couple of weeks, as we're all worried about the concentration in leadership and how far the AI trade has gone. But also they see structural reform and they see better nominal GDP growth. And with that, it's not just better growth because of inflation also going up, but more contained inflation, creating a better backdrop for financial conditions to loosen and allow equities to kind of outperform. And this is obviously going to be different between every EM. They're all their own unique butterflies. But overall, if you lump them together,
00:29there are structural reforms in place and there's a better growth dynamic that should boost earnings and margins on the kind of, you know, margins will also be better defended, I suppose. They're not expected to necessarily blow out, but they're not expected to contract on pressures from idiosyncratic stories. But people love to make this prediction. It usually doesn't come true. Last year when people said it, it did. This year, we have seen those markets outperform. Who's to say that that's really going to last? Because if you were to have traded on valuations in the past decade, you probably would have missed out on a lot of American equity gains. Right. I think it's a little bit,
00:59you have to be careful. Like, obviously, there's ways for investors to buy the basket of EM. But overall, like I said, there's going to be these individual stories. There's going to be outperformances. They also did highlight basically Asia ex-China and Japan is looking pretty strong.
01:12But you are going to have to pick your countries. You are going to have to be very clear on what your target is because there are always these shocks and they come out of nowhere often. And to your point, we get these good narratives going and then something unforeseen comes and knocks everything off.
01:25Right. The way I read it, it's not just about valuations. Right. It's also the idea that at least in terms of the emerging markets call, which I think he said is going to see 10 percent average annual growth.
01:36The idea is that AI is going to provide more productivity to those economies than it will to our more developed economies.
01:46Yeah. And super interesting because we were just talking about that whole power part. If EM starts to look at sort of the open source algorithmic advancements that the Chinese AIs are pushing,
01:56that's less power. It's less infrastructure potentially for data warehouses. Now, I'm not an expert on this. We can bring others on to speak to it.
02:02Power hungry. Exactly. And this is always a constraint. As the demographics grow in some of these countries, there's going to be more of a jostle for who gets that power.
02:10Whereas in America and the West, some of that's already set with our demographics being more stable.
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