SK Hynix’s record earnings and long-term memory contracts revive confidence in AI spending, even as Korean ETFs retain deep monthly losses. Country flows favor selective accumulation in Korea, Japan and Switzerland, while financing, inflation and Chinese competition complicate broader rotation.
Country rotation is separating AI earnings strength from energy costs and political risk. We favor Taiwan and Japan, add Switzerland for balance, and approach Brazil selectively ahead of its runoff. Korea’s retreat shows why strong exports alone cannot justify buying.
World-Wide Wednesday: Country Rotation Is Becoming a Sector Decision Read More »
Country ETF flows reveal a selective international rotation: investors are accumulating Japan, Switzerland and Canada, taking profits in South Korea, and chasing Brazil’s election rally. Taiwan’s AI exposure remains attractive, while China, India and Europe’s fiscal risks warrant greater caution.
World Wide Wednesday: Buying Weakness, Selling Strength—and Choosing the Right Countries Read More »
Emerging markets are increasingly powered by the AI hardware boom, but China is moving the other way. Taiwan and Korea are capturing the earnings, while China’s weak domestic demand, property stress, regulation and cheaper-model economics keep weighing on Chinese equities.
World Wide Wednesday: EM’s AI Split — Why China Is Slumping While Taiwan and Korea Soar Read More »
Developed markets are regaining the international equity advantage as EM’s valuation discount disappears. Germany and Canada offer increasingly visible industrial and resource catalysts, while China remains a contrarian recovery trade and South Korea offers powerful AI earnings growth with substantially higher volatility.
Global ETF flows are rotating toward Europe’s value-heavy markets while investors aggressively buy South Korea’s AI-driven collapse. India, Japan, Brazil and Taiwan continue to lose capital, showing that oil sensitivity, currency instability and crowded technology exposure matter more than geography.
World-Wide Wednesday: Global Flows Split Between European Value and Asian AI Volatility Read More »
The level and direction of interest rates will be a key factor in whether EAFE or EM exposures outperform in the second half of the year.
China’s AI boom is powerful but narrow. Broad indexes remain weighed down by weak consumption, property stress and platform-margin concerns, while AI server, optical-module and automation suppliers are surging because they sit directly in the capital-spending bottlenecks.
Thematic Thursday: China’s AI Boom Is Narrow, Powerful and Not Yet Index-Friendly Read More »
Stay updated with the latests analysis and insights from etfsector.com