Janus Henderson Investors argues China equities merit a strategic allocation, citing an innovation-led growth shift, attractive valuations, diversification benefits and shareholder-value reforms. It contends widening performance dispersion between winners and losers strengthens the case for active stock selection.
6 NOVEMBER 2026
J.P. Morgan Asset Management argues emerging market debt has proven more resilient than expected, citing improved fiscal balances, reserve buffers and flexible exchange rates. It favours duration and selective credit exposure but stresses country differentiation remains essential.
HSBC Asset Management argues resilient corporate profits and policy buffers have offset oil-price and bond-yield shocks, though mega-cap earnings momentum is fading. It also flags emerging-market debt's new resilience and advocates a Total Portfolio Approach to diversification.
5 NOVEMBER 2026
El Niño's impact on emerging markets will be highly country-specific, depending on existing fiscal, food-inflation and hydropower vulnerabilities rather than the storm's overall meteorological strength. The piece argues investors should treat it as a dispersion trade across EM debt rather than a directional asset-class call.
Schroders reports global equities fell in October 2026 as AI valuation doubts triggered a tech sell-off and rotation into defensives, while government bonds rallied except for France amid fiscal stress and oil rose on Middle East tensions.
BlackRock's iShares reports global ETP inflows hit a record $393.1B in October 2026, led by equities ($281.9B) and record fixed income flows ($107B), while commodity buying cooled despite continued gold demand.
Despite China's weak macro backdrop, bottom-up stock-pickers can find value in internet firms, globally expanding businesses, innovative healthcare and consumer companies benefiting from supply discipline. Rising market dispersion and stretched valuations in AI-related stocks reinforce the case for selective, valuation-aware investing over broad market exposure.
Fidelity argues that short selling has materially boosted returns in its FAST Emerging Markets Fund and Fidelity Emerging Markets Ltd, enabling pair trades and leverage against AI disruption and Chinese competition. The firm maintains a diversified 70-80 stock short book while staying structurally positive on emerging market equities.
Baillie Gifford's Long Term Global Growth team explains its deliberately unstructured, generalist approach to idea generation, favouring curiosity, open-mindedness and tolerance for failure over sector coverage. Access to private companies and on-the-ground research, including in China, helps the team identify rare outlier stocks that drive long-run returns.
