Morgan Stanley: Longest Bear Market in Emerging Market Stocks Likely

The transcript discusses the Federal Reserve's rate projections and their impact on the US economy, highlighting a significant cut in growth projections and potential earnings issues. It examines the prolonged bear market in Asian and EM equities, noting high valuations and underperformance in sectors like semiconductors. The discussion also covers the relative performance of US and global markets, emphasizing Japan and China. Currency fluctuations, particularly the strong US dollar, pose challenges for central banks. The outlook for China's economy is uncertain, with geopolitical risks and COVID-19 policies in focus. Despite these challenges, some EM markets like Indonesia and Brazil show resilience.

What factors are influencing the performance of the US dollar and its impact on regional central banks?

How do geopolitical risks and COVID-19 policies affect the market outlook for China?

What are the expectations for the EM equity market in light of the Federal Reserve's actions?