2026 Global Investment Conference: Are emerging markets set to continue outperforming global markets? |
Several key themes are driving emerging markets performance, including attractive valuations, extremely light positioning and a weaker environment for the U.S. dollar, said Todd McClone, partner and portfolio manager at William Blair, during a session at the Canadian Investment Review’s 2026 Global Investment Conference.
“There’s about a minus 0.9 correlation with the dollar versus EM versus [developed market] outperformance. And since 1988, in every non-recessionary environment that’s [seen a] weak dollar, EM has outperformed developed markets. That’s the situation we’re in now.”
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Another key theme in EM dominance is leadership in artificial intelligence, he added. “All the excess capacity to build transformers that the U.S. needs — or that the world........