Elaia Weekly View
🌿 Elaia Weekly View – Week 5 / 2026
Why Emerging Markets Are Entering a New Structural Bull Phase
After more than a decade of relative underperformance, Emerging Markets are entering a fundamentally different regime. The convergence of a global commodity supercycle, structural US dollar weakness, and political normalization in key regions such as Latin America is reshaping the investment landscape.
This is not a short-term tactical rebound. Industrial metals, energy and strategic commodities are being re-priced as demand from AI infrastructure, electrification and the energy transition accelerates, while supply remains constrained. At the same time, a weakening dollar is easing financial conditions across Emerging Markets, improving debt dynamics and creating room for monetary easing just as growth momentum recovers.
In this article, we explain why Emerging Markets are breaking out of a long-term underperformance cycle, why Latin America stands out as a prime beneficiary, and how both equities and local currency bonds offer compelling risk-reward opportunities in 2026. For investors willing to look beyond Developed Markets, the opportunity set has rarely been this attractive.