US and emerging market equities: The race to the top

How have stocks performed over 2019?

Fed Funds Futures suggest the likelihood is that Jerome Powell, chair of the US Federal Reserve, will cut interest rates later this month, for a third time this year.

The central bank's U-turn in January, from promising to toughen restrictions on growth to worrying about a slowing economy, reversed the position on rates.  Yet renewed monetary stimulus has failed to shift the greenback off the appreciatory path it has been on since early 2018, much to the frustration of President Donald Trump and investors in emerging (EM) and frontier (FM) markets.  How much further can the US bull market run? Returns from investing in EMs and FMs tend to correlate negatively with the dollar. Some of this is because it increases the debt burden for countries iss...