BlackRock upgrades emerging market stocks to overweight citing AI demand
BlackRock, the asset manager, just upgraded emerging-market stocks to "overweight," saying AI is driving up demand for resources.
It's especially eyeing South Korea and Taiwan for their key role in making semiconductors, and Latin America for its must-have commodities.
This is a notable shift from June, when BlackRock was more cautious about these markets.
MSCI Emerging earnings seen outpacing US.
Emerging markets are expected to grow much faster than the US analysts see consensus forecasts show earnings for the MSCI Emerging Markets Index growing more than 34% over the next 12 months, compared to about 20% for the MSCI USA Index.
Plus, these markets are way cheaper right now, trading at half the price of US shares.
Despite some risks like higher borrowing costs and global tensions, BlackRock thinks factors like a weaker dollar could give emerging economies an extra boost.