GXG News and Press, Global X MSCI Colombia From 08/02/22

At first blush, GXG looks like an overlooked bet on global inflation. The Banco de la República has been decidedly hawkish, with a 150 bps rate increase delivered just recently. This is a boon for the financial sector. GXG is heavy in oil producers, the key inflation benefici...

The peak rates chatter refuses to go away – and there are good reasons for that. Emerging markets' central banks frontloaded a lot of rate hikes, and real policy rates adjusted by expected inflation are now very positive (maybe even contractionary) in quite a few EMs. The l...

Recession risks are rising, with a European recession, oil embargo risks, and China’s zero-Covid uncertainties adding to Fed rate hikes as headwinds. China’s risks are multi-layered and hard for markets to discount. In our view, IMF officials are much more precise in...

As we entered 2022, many emerging markets were already hurting due to higher commodity prices and rising interest rates; then a war in eastern Europe sent shock waves through the markets. The conflict in Ukraine likely bodes poorly for Eastern Europe more broadly, expanding beyond Rus...

Colombian equities are trading at historically low prices and valuations. GXG is a simple Colombian equities index ETF, and could outperform as economic conditions improve, and valuations normalize. An overview of the fund follows. For further details see: GXG: Colombian...

Risk-off sentiment prevailed in Q1 2022 as geopolitical tensions flared and the Omicron variant became a stumbling block for many countries. The U.S.-based S&P 500 decreased by 4.6% in Q1 2022, outperforming both the MSCI Emerging Markets Index and MSCI All Country World Index. ...

EM debt currently offers value to investors with a medium- to long-term horizon and a willingness to tolerate a period of higher volatility. EM sovereign high-yield spreads are particularly compelling, especially relative to U.S. high-yield debt. Longer term, we believe the outloo...

GXG is the preferred option for those looking to play Colombian equities. GXG’s movements in the short term will be predominantly driven by election-related developments that will linger till May/June. At this price point and valuation, Colombian equities don’t appea...

Emerging Markets are outperforming the rest of the world, due in large part to windfall profits in the commodities-exporting countries of South America and the Middle East. If you want to follow the money, this is a good place to start. Money has been flowing out of tech, consumer dis...

Non-U.S. markets, including EM, DM, and Asia, are outperforming the U.S. markets after underperforming last year. After slightly underperforming growth last year, value is where the money is flowing. With the economy still in growth mode, cyclical stocks should do better than defe...