Word on the Street #340 Emerging Markets: Room to run?
Sep 18, 2025
Rob Mansell, a savvy portfolio manager specializing in multi-asset funds, dives deep into the world of emerging markets. He explores whether China’s market rally can sustain itself and analyzes the unique drivers behind the strong performances in Mexico and Brazil. The conversation also touches on how a weaker dollar benefits these markets and the critical role of Taiwan and Korea in AI supply chains. Mansell highlights how investor strategies have evolved post-pandemic, revealing new opportunities in this dynamic landscape.
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China Rally Fueled By Domestic Buyers
- China’s 2024 equity rally was driven by domestic institutional buying as lower rates pushed investors toward higher-yielding equities.
- Managers say the market rallied partly because the bad story didn’t materially worsen, which was enough to trigger buying.
Local Investors Chase Revenue Growth
- Local retail investors in China favour aggressive revenue-growth stories and companies reinvesting to expand top-line quickly.
- That growth-at-all-costs mentality has supported big-cap consumer and tech names despite profitability concerns.
LatAm Rally Is Country Specific
- Latin America’s gains are concentrated in Mexico and Brazil with country-specific drivers behind the rally.
- Brazil’s market strength is led by banks and fintech winners while Mexico shows broader sector gains.