Why the Developed World Is Surging Ahead of Emerging Markets

In this episode of The Global Economy Podcast, Lucas and Luna break down the 'Great Divergence' — the growing performance gap between developed and emerging market stocks. With Europe and Japan surging (VGK up 3.5%, EWY up 4.2% in a week) while China ETFs like FXI slip 0.9%, they explore the drivers: a strong dollar at 119.3 on the trade-weighted index, rising U.S. interest rate expectations under incoming Fed Chair Kevin Warsh, and geopolitical tensions from Iran to Russia. Lucas explains how dollar strength and higher yields drain capital from EM, while Luna questions whether this divergence is structural or cyclical. They reference specific ETFs and economic data to ground the discussion, and consider what it would take for EM to regain momentum. #GreatDivergence #EmergingMarkets #DevelopedMarkets #DollarStrength #FedPolicy #KevinWarsh #GlobalEconomy #StockMarket #ETFs #VGK #EWY #FXI #China #Europe #Japan #Economics #FexingoBusiness #BusinessPodcast Keep every episode free: buymeacoffee.com/fexingo