Bits and Bobs

A sales note highlighting the extreme concentration of MSCI EM in three chipmakers and the resulting rotation of India from a consensus overweight to an underweight. It also notes Turkish political risks and EM sensitivity to rising US yields.

Key Takeaways

• 1.Emerging Market indices are becoming heavily concentrated in North Asian technology, with SK Hynix, TSMC, and Samsung alone accounting for 25% of MSCI EM.
• 2.India has shifted from a consensus overweight to a major underweight in EM portfolios as foreign ownership hits 14-year lows amid valuation concerns.
• 3.Turkish banks and equity markets face downside risk following a court ruling that removes the main opposition party leader, potentially consolidating President Erdogan's power.

Table of Contents

• First the Bits...
• TURKEY
• EM into a US yield spike
• EM Trader - Rate Reality Check
• And the Bobs...
• 1. AI and Momentum
• 2. INDIA – it's been a big fall from grace

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