Resilience in Times of Shock

TL;DR

Emerging markets are tested and built in contexts of high global tension.
The intensification of the Middle East conflict has increased global economic uncertainty, geopolitical fragmentation, and has varied impacts across countries.
Rising energy costs and supply chain fragility are affecting global markets, leading to oil price volatility and a stronger dollar.
Latin American economies, unlike some in Asia and Europe, show relative resilience due to being net energy and critical raw material exporters.
This resilience means that emerging markets should not be viewed as a single bloc, and selective investment strategies are crucial.
In fixed income, preference leans towards hard currency debt due to global volatility, while equity investments should focus on aligned sectors and countries.
Despite short-term challenges in a volatile and fragmented world, emerging markets also present long-term structural opportunities.

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