Ultimately, 2026 will be defined by a multi-modal distribution. Investors cannot cling to the comfort of the central scenario; they must prepare for a landscape where the tails carry as much cumulative weight as the center. In a year where dispersion – between nations, sectors, and households – reigns supreme, readiness for multiple scenarios is not just prudent, it is essential.

As we approach the close of 2025, we view emerging markets in a position of strength. For investors seeking to reduce concentration risk and better navigate an evolving global landscape, the asset class offers a broad, diverse, and increasingly stable opportunity set. We remain selective but confident in the long-term case for emerging markets across both public and private portfolios. Gramercy is ideally positioned to deliver strong results for the well-being of our clients utilizing the continued power of “A Better Approach to Emerging Markets®.”

The start of the third quarter brings a familiar level of uncertainty surrounding U.S. tariff policy, yet financial markets appear far less jittery than at the start of the prior quarter. While high-conviction predictions on tariffs are scarce, and understandably so, the immediate economic headwinds facing the U.S. have notably eased. This abatement is largely thanks to the passage of a significant fiscal stimulus bill, the structural robustness of the corporate sector, and the looming prospect of the first Federal Reserve rate cut in 2025.