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Emerging markets hit record high as Iran tensions ease — catch the trend

Emerging market stocks just hit a fresh all-time high as the U.S. and Iran make progress on a peace deal. Lower geopolitical risk and cheaper oil are boosting developing economies that depend on energy imports.

Idea

Peace progress between the U.S. and Iran removes a major overhang for global markets, especially emerging economies. Many developing nations are net oil importers, so lower crude prices act like a tax cut for their economies. When emerging markets break out to new highs during geopolitical de-escalation, the momentum often continues as institutional money rotates from expensive U.S. stocks into cheaper international equities.

Key details

EEMEEMVVWOD#emerging_markets#geopolitics#trend_following

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