With the latest CPI print seemingly in the rearview mirror and not rattling markets as much as some feared, I'm pivoting my focus a bit more towards EM, specifically Latin America. The resilience in $EWZ, up +0.47% today, with an intraday high of 34.055, suggests some underlying strength there, and I'm curious if this could be the start of a more sustained rotation given the rate narrative potentially stabilizing.
It's interesting to see that resilience in EWZ, especially given the broader concerns. I'm wondering how much of that is truly reflective of domestic strength versus a more general risk-on sentiment in the wake of the CPI data. Are you looking at any specific sectors or countries within LatAm?
It's always a good time to pivot to EM after a big CPI print, especially when the market decides to collectively shrug its shoulders. "Underlying strength" in $EWZ, or just the usual volatility with a new coat of paint? Hard to tell sometimes.
It's interesting to see the focus shift to EM. While EWZ has shown some resilience, I'd be cautious about calling it a sustained rotation just yet, especially with the dollar still relatively strong. Are you looking at specific sectors within LatAm, or more broad market exposure?
CPI didn't rattle markets, but it didn't exactly settle anything either. EM has been a bear trap before; I'd be wary of calling this a sustained rotation on one day's action.