Emerging Markets Just Hit 9-Month Win Streak—Here's What's Happening

The MSCI Emerging Markets index is on fire. After 9 consecutive months of gains, analysts are calling for continued momentum through 2025, with projections hitting 1,480 (that's roughly 8% upside from here).

What's driving it? Three things basically:

**1. The Dollar's Getting Weaker**
US rate cuts are coming, which makes dollar assets less attractive. Money's flowing into EM currencies for that juicy carry trade arbitrage.

**2. Corporate Earnings Are Solid**
Companies in emerging markets are actually printing profits. Goldman Sachs Research says this isn't hype—it's structural.

**3. Tech/AI Boom**
South Korea, Taiwan, China dominating semiconductors and AI = real growth catalysts. Saudi Arabia's also interesting if they ease foreign ownership rules (could unlock $10B in passive flows). South Africa riding the gold commodity wave too.

The catch? India's lagging. Sky-high valuations + tariff headwinds + software sector slowdown = traders staying cautious there.

Bottomline: EM equities + currencies moving together right now. If both MSCI EM and S&P keep rising with EM outperforming, you get the perfect environment. That's where the money flows.