“The US economy is in remarkably good shape” said Fed Chair Powell in early December 2024. These words have not aged well. Emerging market economies can no longer rely on low interest rates to provide automatic debt service relief. In addition, ironically, the volatile and uncertain global environment is leading to increased capital flight from emerging markets back to the US and Europe, as they become the new global safe havens. This has tempered some as we observe many investors reducing their overweight positions in the US. […]