Quote · Excess Returns
Finding Quality Growth in Emerging Markets with Ian Smith
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How the dollar impacts emerging market returns
At 16:10 · chapter starts 13:16
Ian Smith explains how every EM outperformance and underperformance cycle since 1987 has correlated with dollar weakness or strength, and why a benign dollar unlocks easier monetary and fiscal policy in EM. [1] — Ian Smith "Every EM outperformance and underperformance cycle since 1987 has coincided with a weak or strong dollar. A benign dollar allows EM policym…" 15:35
Every EM outperformance and underperformance cycle since 1987 has coincided with a weak or strong dollar. A benign dollar allows EM policymakers to ease monetary and fiscal policy, boosting domestic growth — the most powerful driver of EM returns.
The MSCI Emerging Markets index has existed since 1987, providing nearly four decades of performance data covering two full outperformance and two underperformance cycles.
