AI Investors Miss the Mark, Bet on Underrated Emerging Markets
Two veteran investors, known for their prescient bets against the 2008 housing bubble, are shunning the crowded AI trade in favor of overlooked opportunities in emerging markets.
Porter Collins and Vincent Daniel, co-founders of Seawolf Capital, believe emerging markets are primed for growth, particularly under the potential influence of President Trump's policies. A weaker dollar, they argue, could drive investors towards international markets.
Specifically, Brazil and China are seen as attractive markets. Collins explains, "Wall Street's aversion to Chinese stocks has created a blind spot to their potential."
Daniel believes emerging markets will gain traction if Trump's agenda of American exceptionalism leads to a weaker dollar. "This would compel investors to seek opportunities beyond the top-tier assets," he says.
So far in 2024, the iShares MSCI Emerging Markets ETF has climbed 1.24%. However, emerging markets have faced volatility since Trump's election, due to concerns over US tariffs.
"Trump's policies will shape the investment landscape," Daniel asserts. "We aim to anticipate his likely actions and capitalize on the resulting opportunities."