Emerging markets
A great graph from Gita Gopinath (Chief Economist of the IMF) which helps articulate our underweight to the emerging market region.
For the most part (Norway, perhaps, the exception, which raised rates overnight) the EMs are the ones tightening policy, at the margin, relative to DMs, and they are doing it not because of strong growth (the good reason to be tightening) but due to inflationary concerns (imported inflation, via weaker currencies, and via COVID-related supply side factors).
Tightening policy, all else equal, makes for a challenging backdrop to equity markets.
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