Are Equity Markets Playing Hot Potato? Decoding the Recent Erratic Behavior in Technology Stocks

Technology stocks have surged since the AI boom, pushing valuations and earnings expectations to elevated levels and leaving little room for disappointment. Recent volatility has punished many software names on fears that AI will disrupt their business models, while hardware and semiconductor stocks have rallied sharply — creating a performance gap that may prove unsustainable over time.

Latam Keeps Shining – Despite Itself

América Latina inicia 2026 con un renovado interés de los inversionistas, respaldado por un giro político hacia la derecha, datos macroeconómicos resilientes y mayor credibilidad en la política monetaria, impulsando una reevaluación del potencial de la región entre distintas clases de activos.

Latam Keeps Shining – Despite Itself

Latin America enters 2026 with renewed investor interest, supported by a right-leaning political shift, resilient macro data and monetary credibility, prompting a reassessment of the region’s opportunity set across asset classes. In this Market Commentary, we revisit Latin America – a region that may be regaining its shine – to evaluate how best to position for the year ahead.

Not all that glitters is gold (in the markets)

A few weeks ago, we met with the manager of an International Small Cap Value Fund who highlighted a Japanese company that digitalizes accounting documents for small and medium-sized enterprises in Japan. After seeing his thorough due diligence – visiting the company, meeting its management team, and running multiple valuation analyses – a natural question remained: is he seeing something we are not, and does all this effort truly make it a good investment, given that portfolios cannot be built on good intentions alone?

Argentina: ¿Un futuro más prometedor en el horizonte?

Ahora que se ha disipado la incertidumbre en torno a las elecciones legislativas en Argentina, donde La Libertad Avanza (LLA) sorprendió a los mercados, analistas y encuestas al lograr una victoria aplastante, queremos realizar un análisis prospectivo para evaluar las implicaciones reales de ese triunfo sobre los activos financieros y cuáles son las tareas más urgentes del presidente Milei para la segunda mitad de su mandato.

Argentina: A Brighter Future Ahead?

Now that the dust has settled around the Argentinian mid-term elections, where La Libertad Avanza – LLA – surprised markets, pundits, and polls alike by achieving a landslide victory, we wanted to perform a forward-looking analysis where we can assess the real implications of that victory for financial assets, and what are President Milei’s most pressing tasks for the second half of his administration.

Our Thoughts on Global Equity Markets for 2026: Part Two – International Equities: “Skate to Where the Puck is Going to Be, Not Where it Has Been” – Wayne Gretzky

As global equity markets look ahead to 2026, shifting dynamics beyond the United States are becoming increasingly relevant. With currency trends, valuation differentials, and earnings expectations evolving across regions, international equities may offer meaningful opportunities for investors willing to look forward rather than backward. In this context, anticipating where future growth may emerge—rather than relying on past leadership—becomes central to navigating a more globally balanced investment landscape.

Our Thoughts on Global Equity Markets for 2026: Part One – U.S. Equities: Balance Will Be Key

U.S. equity markets enter 2026 following a strong performance led by large-cap technology, while signs of broader participation are beginning to emerge. As earnings growth becomes less concentrated and market breadth gradually expands, balance across sectors and market capitalizations is expected to play a central role in navigating opportunities and risks in the year ahead.

Chile: A Latin American Nonconformity Story

Latin America is showing that political nonconformity has become the region’s strongest electoral force. Chile has joined this trend during the current election cycle, reinforcing a broader pattern of voter rejection toward traditional political structures. Against this backdrop, the evolving political landscape presents meaningful implications for markets, with potential impacts across foreign exchange, sovereign bonds, and equities, in a country navigating increased institutional stability and shifting economic expectations.

Speculation at Hyperscale: Between AI Bubbles and Capex

The current equity rally has been driven by a narrow group of dominant technology companies tied to the artificial intelligence theme. Unlike prior speculative episodes, today’s market leaders are supported by strong earnings, substantial cash flows, and fortress-like balance sheets. While elevated concentration and rising capital expenditures by hyperscalers warrant close monitoring, broader earnings growth and potential sector rotation suggest that market dynamics remain more consistent with a concentration challenge than the formation of an outright bubble.

Notes From the Road – Argentina Edition (Part Two): Meetings with Public Companies

Argentina’s midterm elections delivered a stronger-than-expected victory for President Javier Milei’s coalition, significantly expanding its congressional representation and reinforcing the path for labor and tax reforms. This second installment focuses on the financial and industrial sectors, drawing from our meetings with Grupo Financiero Galicia, Banco Macro, and Ternium, where improving economic stability, rising financial inclusion, and disciplined capital structures point to renewed growth potential across Argentina’s equity landscape.

Notes From the Road – Argentina Edition (Part One): Meetings with Public Companies

Earlier this month, we traveled to Buenos Aires to meet with the investor relations teams of several leading Argentine public companies, aiming to gain first-hand insight into how businesses are navigating political uncertainty and macroeconomic volatility ahead of the mid-term elections. This first installment focuses on Argentina’s energy sector—particularly Vaca Muerta—where scale, technology, and regulatory stability are helping key players position themselves beyond short-term political risk.