Emerging markets have developed stronger immune systems. US debt dynamics are deteriorating and the Federal Reserve has started hiking interest rates, yet EM appears under no pressure to follow suit. The US has sneezed, but EM isn't catching the proverbial cold.
Historically, when the Fed starts tightening policy, emerging economies are forced to hike as well, even if their domestic economies aren't strong enough to warrant it, due to currency concerns and debt dynamics. This has given rise to another market cliche: the Fed is central banker to the world.
