Our guiding principles of resilience, optionality, and agility, or “ROA,” will steer us toward achieving our desired returns without committing non-recoverable mistakes. By adhering to our strategy of “planning the trade and trading the plan,” we intend to continue to navigate and leverage market volatility to our advantage, thus providing a better approach to emerging markets.

The evidence of a challenging “last mile” in the advanced countries’ battle against inflation, and the backup in government yields that came with that, did not dent the impressive asset price rally that started last October. Neither did news that Germany, Japan, and the UK had fallen into recession, the tragic prolongation of deadly wars, or the heavy election calendar.

The tug-of-war between more supportive financial conditions and less accommodating growth will place a premium on responsive domestic policies, something that quite a few emerging economies did well on in the last few years. It is also likely to increase the pressure for greater dispersion in both economic and financial outcomes within the asset class.