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Sumedha Lakmal/iStock via Getty Images Gravity "It has been said that arguing against globalization is like arguing against the laws of gravity." - Kofi Annan The Sun's gravity pulls the planets in orbit around it, and some planets attract moons in orbit around them. Even spacecraft are moving through the solar system, either in orbit around the Moon or Earth, or traveling to distant worlds, because of gravitational forces.

Lately two forces have been acting on emerging markets with power that seems as mighty as the Sun’s gravity. The first is the gravitational pull of the U.S.



economy and the U.S. Federal Reserve, which are both controlling and causing inflation with data and hence policy that seems what we believe to be always be looking too far back in the rearview mirror.

But the second and bigger force is the power of U.S.-based Nvidia’s words and quarters to potentially influence stock prices around the world due to artificial intelligence themes ('AI').

What has been evident for the last few years, particularly with China’s fall from grace, is that the United States is central to the circulation of the global economy. Emerging market stocks were pulled along for the ride this quarter—for good (emerging markets have the leading semiconductor foundries that power AI) and for bad (the resurgence of inflation fears is pushing back some expectations for more rapid interest rate cuts and that is curtailing growth expectations for countries and stocks that depend on c.

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