Challenges for Emerging Markets

Emerging markets have faced challenges over the past few months, including higher core bond yields, a stronger dollar, and China's slowing recovery. These challenges have impacted E.M. risk appetite, and investors have become more cautious. The global rates environment, a strong dollar, and reduced support from China have affected emerging market assets. However, investors still maintain a constructive outlook on emerging markets, and while they have reduced their enthusiasm, they remain interested in E.M. assets and are likely to be more selective in their investments.