The Value of the US Over Emerging Markets

The valuation premium of the US over emerging markets is very wide and we are trading very big premiums to EM. But EM has been relatively cheap for about eight years now, which means that it has been by every definition of value track. We had a burst of good performance in EM and then it gave it all back. And so we remain underweight because until we see a sign that you're actually going to get an inflection in earnings, then you will continue to be in what will be a value trap.