EEM - iShares MSCI Emerging Markets ETF

Emerging market stocks tend to outperform when dollar weakens, which is expected from carry trade unwind.

Trump's largest net purchase was the iShares Emerging Markets ETF. The host also personally holds this in his retirement account, citing commodity-rich emerging markets in Latin America and diversification away from richly valued US stocks.

JP Morgan, Schwab, Vanguard, and Fidelity all project emerging markets to outperform US stocks on a valuation basis, with 7-8%+ annualized growth projected. Emerging markets expected to make up nearly half of global stock market by 2050.

Emerging markets tend to do well when the dollar weakens because their dollar-based debts become smaller in local currency terms. Felix identifies this as an overlooked opportunity.

Presented as an alternative for investors who want broad emerging market exposure rather than a single-country bet. The host notes it includes large emerging market countries like India, Brazil, Spain, Poland, and Austria. He sees emerging markets as a whole breaking out from a 20-year base and entering a multi-year outperformance cycle.

Host highlights EEM at all-time highs, up 9% YTD and up 36% over 1 year, outperforming US markets as an example of investing abroad to beat a weakening dollar

Host highlights EEM at all-time highs, up 9% YTD and up 36% over 1 year, outperforming US markets as an example of investing abroad to beat a weakening dollar

Outperformed S&P; good for diversification

Just opened a position because he is fairly bullish on emerging markets.