Watching EM on Rate Hike Narrative Shifts

Been keeping a close eye on emerging markets lately, especially with the recent hawkish shift in tone from a few more central banks. The narrative around a sustained rate hike cycle, even if tempered by inflation cooling in some regions, is making me rethink how much upside there is in certain EM equities.

Today's move in $EEM, down nearly 2% to 63.33, isn't helping that sentiment. While it's just one day, it aligns with my concern that a stronger dollar and higher cost of capital globally will act as a significant headwind for many developing economies. I'm keeping my watchlist pretty tight on the EM side for now, favoring larger, more domestically-focused companies if I'm going to touch the sector, and definitely not chasing any quick bounces. The risk-reward just feels off for broad-based EM exposure until we get clearer signals on rate paths and global growth stability.