Warakirri flags leveraged ETF-fueled AI froth as correction risk for Korea, Taiwan semiconductors rises
SOXX•Portfolio tilted to cash-generative leaders
The strategy remained tilted toward cash-generative emerging-market market leaders, with 80% of holdings ranked No. 1 by market share as of June 30.
Warakirri also said a geopolitics-driven capex cycle should lift emerging-market commodities and renewables demand, supporting emerging-market exports, growth and currencies.
AI froth seen in South Korea and Taiwan semiconductors
Warakirri warned of AI-linked froth in South Korea and Taiwan via leveraged single-stock ETFs, and kept semiconductor exposure at about 20% versus 40% for the index.
Global policy volatility and higher rates lift EM risk
Warakirri flagged higher global policy volatility as a key driver of rising emerging-market equity risk via a higher cost of capital.
US 10-year government bond yield rose to 4.5% in June 2026 from 3.6% in 2024, tightening emerging-market financial conditions.
