Why Emerging Markets?
Emerging economies represent a diverse set of regions with powerful structural growth drivers. Countries such as China, India, Brazil, Mexico, Indonesia, and South Africa are benefiting from favorable demographics, rising middle-class consumption, and investment in infrastructure and technology. Allocations to these markets also broaden portfolio exposure beyond developed economies, providing diversification benefits and potential for enhanced returns.
We favor emerging markets right now because the US dollar is weak. A softer dollar tends to benefit countries with dollar-denominated debt and can boost returns for investors in local currencies. Combined with attractive valuations in many emerging economies, this environment makes them an appealing part of a diversified portfolio.
Our Perspective
We believe emerging markets offer a compelling balance of opportunity and diversification at this stage of the market cycle. While short-term volatility is always possible, the long-term trends supporting these regions remain strong. Our increased allocation reflects our conviction that emerging markets can play an important role in driving portfolio resilience and growth over time.
The Bottom Line
By allocating more capital to emerging markets—including economies such as China, India, Brazil, Mexico, Indonesia, and South Africa—Tandem Wealth is taking a proactive step to capture opportunities across a wider global landscape, helping our clients pursue growth while maintaining diversified, well-balanced portfolios.