I think EM is in a tough spot. It needs lower US rates, which are already being priced for a cutting cycle. The only way they drop significantly from here is if the cooling in the US becomes recessionary, but that would be bad for US as well as EM equities too. If the US economy does well, there is little incentive to lower interest rates more than what is priced.
Thanks for the conversation Patrick. Very interesting topics and questions. We needed more hours to cover all that...tks
Thank you! It was a really interesting conversation!
And yes, we could have talked for hours, so we will have to catch up again soon!
I think EM is in a tough spot. It needs lower US rates, which are already being priced for a cutting cycle. The only way they drop significantly from here is if the cooling in the US becomes recessionary, but that would be bad for US as well as EM equities too. If the US economy does well, there is little incentive to lower interest rates more than what is priced.