Navigating the Strong Dollar's Impact on Emerging Markets

This chapter explores the nuanced effects of a strong U.S. dollar on emerging markets, illustrating how it can benefit exporters while adversely affecting equity and bond markets. It examines the correlation between dollar strength and international asset performance, revealing shifts in economic dynamics among emerging markets. The discussion emphasizes the potential for these markets to outperform the U.S. on a per capita basis, even as transformations in countries like India, Brazil, and South Africa present new investment opportunities amidst challenges.