Investors quietly withdraw from US assets and rotate towards gold and emerging markets.

Amidst tensions between the United States and Europe, the pressure on the dollar is increasing, leading to a renewed trend of global diversified asset allocation. Emerging market stocks, currencies, and precious metals have continued their strong performance since 2026. The upward trend accelerated on Friday, with the MSCI Emerging Markets Index on track for its fifth consecutive week of gains, the longest streak since May of last year. So far this year, the index has risen by 7%, while the S&P 500 index has only risen by 1%. Asian tech stocks have provided support for the recent rise in emerging markets. The benchmark index of the South African stock market is expected to rise for the third consecutive week, while gold is trading just below $5,000 per ounce. With the momentum shifting funds from U.S. assets to overseas assets, investors are pouring record amounts of money into emerging market funds, pushing emerging market stock indices to record highs.