Equities & Funds: Emerging markets defy the Fed rate hike

Frankfurt For many investors, the year 2022 has been a letdown so far. The US markets in particular went down. The US technology index Nasdaq had its worst start to the year since the financial crisis, and the leading index S&P 500 and important European stock exchanges also lost significantly.

Things went better in emerging countries like Brazil, South Africa and Indonesia. Actually, these are considered to be particularly vulnerable when the US Federal Reserve tightens its monetary policy. In the past, international investors have often withdrawn capital from there and brought it to the USA. However, since the Fed signaled significantly faster rate hikes from December, the markets in many emerging countries have developed more positively than in the USA. Experts see good chances that this trend will continue.