Episode Details

EM resilience tested by Fed, fueled by long-term flows

Emerging market equities have more than doubled the S&P 500's return year-to-date, and have held up well despite rising Fed hike expectations and a stronger US dollar. In this episode, David Hauner explains why he remains structurally bullish on EM despite our Economic team’s expectations for three Fed hikes later this year. David discusses how flows over the last decade, interest rate differentials and dollar diversification play into his calculus. He also addresses the impact and risks that come with U.S. Midterm Elections and AI. David Beker joins for commentary on Brazil, where weaker growth expectations, lower oil and a less favorable rate outlook have flipped the script. But he suggests that political clarity could help investors to re-engage.

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