Today on the program, we welcome portfolio manager Sam Polyak to the show. Sam takes us on a tour of emerging markets, from Asia to Latin America, and discusses the market opportunities he is tracking in the first half of 2024. Sam highlights Mexico as a place of oligopolies, but also says there are good returns, but low innovation. In Poland, there is a political transition with a new government, which is pro-business. Looking to Hungary, Sam points out that a pharmaceutical company has developed a drug in the US – a $5 billion dollar drug, which has translated to good dividends. Greece has a new government was much more pro-business. The banks restructured their bad debt and growth is accelerating. Sam adds travelling to Greece has increased, meaning Greece is on a big upswing. He says a soft landing could create a goldilocks scenario for emerging markets. There is a lot of pent-up demand. If the global behemoth companies were listed on NASDAQ, they would be twice of what it is today. In the end, you should see a re-rating of these businesses, in addition to earnings moving higher. In conclusion, a higher multiple on higher margins.

 

Recorded on February 14, 2024.

 

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