The global rotation in equities continues

Fears of an AI bubble spark rotation toward ex-U.S. equity markets

Investors are looking for equity opportunities outside the U.S. as fears of an AI bubble continue to mount. Some have turned towards other developed markets, like Europe, while others have championed emerging markets. Insights from Robeco, Morgan Stanley IM, Research Affiliates, and more help keep investors grounded as the equity rotation continues.

Is AI in a bubble?

When Will AI Be Both Powerful and Profitable? (Research Affiliates)

Today’s historic level of AI capex generates headlines but may conflate gross spending with lasting capital accumulation.

AI’s Return on Investment Debate: Two Simple Questions (Capital Group)

For compliance reasons, this paper is only accessible in certain geographies

Is the total addressable market (TAM) for AI sufficiently large and how fast will that TAM arrive?

AI Firms Going Public Could Help Identify Winners (MFS)

For compliance reasons, this paper is only accessible in certain geographies

As AI firms go from private to public, investors may get more transparency into how they’re creating value.

Developed markets equities

2025: A Market for Stock Pickers in France? (S&P Dow Jones Indices)

Last year, most active funds in Europe struggled to outperform their benchmarks – except France. Here’s why.

Japan’s Equity Revival: An Opportunity for Investors? (Fidelity International)

For compliance reasons, this paper is only accessible in certain geographies

How today’s Japan – very different from the past – can provide diversification benefits and the potential for attractive long-term returns.

3 Reasons to Consider International Small Cap Equities (Voya IM)

How international small caps can deliver strong diversification benefits in a global equity portfolio.

Time for Europe! Reforms, Resilience, Rebalance (Amundi)

For compliance reasons, this paper is NOT accessible in the United States

Europe is back in the conversation as an attractive diversifier for international investors’ portfolios.

European Banks Are Still an Attractive (Natixis IM)

For compliance reasons, this paper is NOT accessible in the United States and Canada

What are the factors supporting European bank bonds, and will they continue?

Emerging markets equities

Durable or Cyclical? Navigating the Global Equity Rotation (Meketa)

The question is not whether to diversify but whether the structure of diversification still fits the market environment ahead.

Can EMs Adapt to the Changing Face of Globalization? (International Banker)

A deeper look at EMs strengths and how countries are navigating today’s crosscurrents.

Hidden Gems: Sri Lanka (MarketVector Indexes)

Since its economic crisis and sovereign debt default in 2022, Sri Lanka’s macro conditions – and investment opportunities – have improved meaningfully.

Mexico's Domestic Opportunity (Morgan Stanley IM)

Can Mexico realize its own economic potential beyond being the U.S.’s largest trading partner?

What Matters More for Emerging Markets Investors: Economic Growth or EPS Growth?

Unlike changes in GDP, growth in EPS and DPS exhibit a strong positive correlation with country-level equity returns.

Africa’s Leading Economies Are the Next EM Opportunity (Robeco)

Which countries in Africa are poised to create some of the biggest opportunities for EM investors today?