🌏 The best-performing market this year isn't the US. But most investors don't own a single dollar of it.
Emerging markets are up over 25% in 2026 — roughly DOUBLE the return of developed markets (+12%). And here's what makes it more interesting: this is happening even with a firm US dollar and a hawkish Fed working against it.
That matters. When EM rallies purely because the dollar weakens, it can be a currency illusion. When it rallies despite a strengthening dollar — like now — it points to something more real: actual earnings growth and money genuinely rotating into markets like Taiwan, China, South Korea and India.
Meanwhile, the usual suspects are wobbling. Korea's market dropped almost 10% in a day last week on chip concentration. The S&P remains 33% concentrated in just 7 stocks. The growth story is broadening beyond the names everyone already owns.
The catch? Emerging markets aren't something to buy blindly off a headline. Which markets, how much exposure, and how it fits alongside your existing holdings — that's where it needs to be done properly. Get it wrong and you're just swapping one concentration risk for another.
If your portfolio is all-US or all-local, you're missing the part of the world that's actually moving. Drop me a message and I'll walk you through whether emerging markets exposure makes sense for you 📩
July 11, 2026 215 1
