Fiscal restraint in EM could increase in 2026

We see three key areas to focus on. First, I think foreign investors should focus on central banks that have continued to engage unorthodox policy and are winning the war on inflation. Second, we see the potential for fiscally conservative governments to take hold in a number of places in the emerging markets. Upcoming elections in Brazil and Colombia should provide the opportunity for fiscal candidates to take control. Lastly, we think there's opportunities in frontier markets that still have support from multi-laterals and have had success in boosting their commodity exports. In that realm, we have particularly to Africa where we see significant opportunities. Argentina has taken bold steps to stabilize its economy what factors will determine whether these reforms succeed in 2026 and beyond? The first key event was the validation that President Milei and his party got in the recent midterm elections. This will allow for political consolidation and for legislative actions that will crystallize reforms, allow deregulation measures to occur and ultimately remove capital controls. If this occurs, what we expect to happen is significant amounts of foreign direct investment to flow into Argentina. This will be efficient capital; it will stimulate the economy in a much more efficient manner than the overspending that the Argentinian government has done through the past.