Bits & Bobs

This note provides an update on Emerging Markets (EM) equity performance and macro outlook, highlighting earnings upgrades in North Asia and a tactical shift toward an Overweight equity position for the next 12 months.

Key Takeaways

• 1.EM earnings growth estimates for 2026 and 2027 have been upgraded, largely driven by North Asia, though excluding this region would cause the expansion story to weaken significantly.
• 2.Tactical asset allocation remains modestly pro-risk for the 12-month horizon, with an Overweight stance on equities and Underweight on credit, while neutral on a 3-month view.

Table of Contents

• First the Bits...
• Resolution Refrain
• Tech and Energy Drive EM Differentiation
• Big Business, Small Macro
• Macro Pricing—Is There Still Room For Relief?
• Additional Disclaimers