LongApril 22, 2026
Praetorian Capital on Emerging Markets Basket
Thesis
Emerging markets are inexpensive and are poised to benefit from a weakening US Dollar. A weak dollar policy, which may be implemented by the Trump Administration, would be a boon to emerging market economies that have borrowed in US Dollars, acting as a catalyst to unlock value.
“I believe that catalyst is a potential decline in the US Dollar, tied to policy changes emanating from the Trump Administration. For MAGA policies to work, the US needs to follow a weak Dollar policy. At the same time, Emerging Markets, which frequently borrow in US Dollars, are hamstrung by a strong dollar, but a weakening dollar is a boon to their economies.”
Key risks
- A strengthening or stable US Dollar would remove the catalyst for the thesis.