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EM assets & the risks from tighter DM monetary policy

We doubt that aggressive policy tightening by developed market (DM) central banks will be followed by a series of financial crises in major emerging market (EM) economies in the way that it has at times in the past. Even so, we still suspect that global factors mean EM assets will generally struggle alongside those in DMs for a while yet, and that many commodities-sensitive EM stock markets will underperform.

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