Pete provides real-world examples, from the yen’s depreciation to the UK gilt crisis, highlighting how EM's resilience and orthodox behavior have challenged outdated perceptions. We also dive into key drivers behind EM’s recent outperformance, the evolving risk-return profile in global markets, and the new volatility regime in DM. This episode is packed with valuable insights for anyone interested in understanding the shifting dynamics between EM and DM and what it means for investment portfolios moving forward.