🎙️ podcast Analysis January 23, 2026 The Markets

Emerging Markets: Massive Broadening Trade Accelerates as Tech Concentration Unwinds

Emerging Markets European Banks Small Cap US Equities Precious Metals
Tickers
3 Picks
Conviction MEDIUM
Risk Profile 1.8/10 (LOW RISK)
Horizon 6-12 months
Signal Snapshot Core Theme: Global Equity Rotation

Geopolitical fears drive volatility

Tech concentration creates reallocation amplification

Tech earnings; Fed nomination; Bond volatility

Executive Summary

Goldman's European trading desk identifies a structural shift away from mega-cap tech concentration toward emerging markets and cyclical assets. Rich Pravoratsky notes that moving "a couple of dollars out of these companies into everything else is a massive impact" due to extreme S&P 500 concentration. The Russell 2000 has outperformed dramatically while big-cap tech faces capex constraints, DRAM shortages, and political pressure. Central bank gold demand accelerated after Russian asset confisca...

Key Investment Opportunity

Emerging Markets Broadening Trade

Structural rotation from concentrated US tech toward diversified EM exposure as investors seek growth outside mega-cap concentration

...and 2 more investment opportunities

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