On EM equity correlation: Is it just me, or are correlations tighter now?
Hey everyone, been trying to get my head around current EM equity dynamics. Historically, I've always thought of EM as a bit of a mosaic, with individual country narratives driving a lot of the price action, meaning some decent diversification even within the EM basket. But lately, it feels like everything's moving much more in lockstep, especially when a big risk-off event hits globally. Is this just confirmation bias on my part, or are others seeing a much tighter correlation across, say, $KWEB, $EEM, and even some of the Latin American ETFs like $EWZ? It's making me rethink position sizing if the diversification benefit within EM isn't what it used to be.