Story perspectives

Emerging Markets Adapt to US Rate Hikes and Reforms

3/30/2025

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Summary

Story summary

Emerging markets have struggled with underperformance due to fluctuating bull and bear market cycles since the late '80s.
US exceptionalism and low interest rates after the global financial crisis have limited EM growth for 15 years.
Significant reforms in countries like India and Brazil, including bankruptcy laws, have enhanced economic stability.
Higher US interest rates affect EM differently, as these economies have adjusted their pricing strategies to accommodate such changes.

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Story summary

Emerging markets have struggled with underperformance due to fluctuating bull and bear market cycles since the late '80s.
US exceptionalism and low interest rates after the global financial crisis have limited EM growth for 15 years.
Significant reforms in countries like India and Brazil, including bankruptcy laws, have enhanced economic stability.
Higher US interest rates affect EM differently, as these economies have adjusted their pricing strategies to accommodate such changes.