Todd Jablonski

Jablonski said "Korea may be undervalued and that good news may be yet to come." Korean equities have seen price volatility on energy concerns, but fundamentals remain attractive. As energy prices moderate and global demand for chips and electronics persists, the economy is well-positioned. Positive on Korean equities due to attractive valuations and positive fundamental outlook. A renewed energy price shock or a slowdown in global trade and tech demand.

We are overweight on Korea and Taiwan due to exceptional earnings growth driven by the AI boom, with Korea expecting 163% earnings growth and Taiwan also benefiting strongly, and we see further upside in these markets.

Jablonski highlighted Latin America, specifically Brazil, as "showing some signs, interesting signs." He sees opportunities in select emerging markets beyond Asia, with Brazil exhibiting improving economic indicators. Positive on Brazilian equities as part of a diversified EM allocation. Regional instability or a reversal in commodity prices.

Jablonski listed China as an opportunity within emerging markets, alongside Korea. He sees a strong underlying global economy supporting emerging market growth, and China stands to benefit from an abatement in energy prices and continued demand. Positive on Chinese equities as part of a broader EM overweight, anticipating cyclical improvement. Geopolitical tensions worsen, or domestic Chinese growth disappoints.

Jablonski stated he is "overweight in the US where we like large and small caps." He believes the underlying US and global economy is strong (US growth ~2.5%, global earnings growth ~14% for 2026), and the relief rally reflects growing confidence that high energy prices and geopolitical tensions may abate. Positive on US equities due to resilient fundamentals and a potential de-escalation in geopolitical risk. Geopolitical tensions re-escalate, causing a renewed spike in oil prices that derails growth.