Russia’s invasion of Ukraine shifted investor sentiment towards China, India and other APAC emerging markets in 2022. Are they keeping momentum this year?
The first week of May ended with the US Federal Reserve raising its key interest rate by 50 basis points. Investors, who expected a hike of that magnitude but feared the Fed might opt for a 0.75% increase, spent most of the week taking defensive positions. They cut their exposure to emerging markets and high yield debt, technology stocks, alternative assets and real estate. Europe Equity and Bond Funds also experienced significant redemptions as Russia’s invasion of Ukraine grinds into its 12th week.