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Fed's hawkish tone after decent CPI number
The Fed's hawkish stance post a largely in-line CPI print suggests they're still more concerned about inflation stickiness than growth, which has me leaning towards trimming some of my emerging market exposure like $EWZ, despite its modest upside today. It just doesn't feel like the right environment to be aggressively long EM.
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It's a reasonable read of the current Fed posture. While $EWZ had a good day, the broader macroeconomic headwinds for EM, especially with a strong dollar and potential rate hikes, seem to outweigh short-term gains. Are you looking at reallocating into developed markets or just cash?