Key takeaways: The 2026 emerging markets landscape is increasingly defined by political alignment with the Trump administration; divergent geopolitical positioning creates significant differentiation within the asset class and new sources of alpha generation. Latin America faces a critical inflection with major elections across Colombia, Peru and Brazil during 2026, while US-China competition for regional influence— particularly regarding ports, commodities, and energy infrastructure—shapes policy trajectories and capital flows. Portfolio positioning reflects this differentiated environment: tactically favoring select hard currency debt and carry opportunities where political risk is manageable, while managing exposure to jurisdictions facing fiscal headwinds before or during electoral cycles. Concentrated carry trades face structural vulnerability: High-yield positions in Turkey, Brazil, and Mexico depend on policy continuity and geopolitical stability, creating asymmetric downside risks in a shifting landscape that demands active management over passive EM beta exposure.