An emerging markets supercycle has just begun: Shuli Ren

Group 1: Emerging Markets Supercycle - Emerging markets are believed to have entered a yearslong supercycle, supported by factors such as a weak dollar and benign global economic growth [2][15] - The stock performance of resource-rich countries like Chile, Brazil, and South Africa is closely linked to commodity prices, indicating a bullish outlook for these markets [3][15] Group 2: Commodity Stockpiling - The geopolitical landscape, particularly the consequences of Russia's invasion of Ukraine, is prompting central banks to build gold reserves and diversify from Treasuries, which may lead to increased demand for commodities like gold, silver, copper, and nickel [2][15] - Countries are likely to boost inventories of commodities essential for high-end manufacturing, including robotics, electric vehicles, and AI data centers [2][15] Group 3: New Investment Frontiers - Venezuela, previously a defaulter in the global sovereign bond market, is now being discussed for potential debt restructuring, indicating a shift in investment sentiment [5][15] - Saudi Arabia has made significant moves to attract international investment, including allowing foreigners to invest directly in its stock market and buy property, which could lead to substantial portfolio inflows [8][9][15] Group 4: AI Investment Opportunities - The global interest in AI has extended to emerging markets, with significant components of the AI supply chain located outside the Western bloc, particularly in South Korea [11][12][15] - The Kospi Index in South Korea has seen an increase of 11.5% this year, reflecting the growing importance of AI-related industries [12][15] Group 5: Diverse Investment Landscape - Emerging markets are evolving into a diverse investment landscape, offering opportunities for supply-chain specialists, commodity investors, and those looking to capitalize on economic reforms in countries like China and Vietnam [14][15]