Why Morgan Stanley's Kushma Is Bullish on Emerging Markets

The transcript discusses the economic performance of emerging markets (EM), focusing on rate cutting cycles in countries like Hungary and Chile. It highlights Brazil's high real rates and potential for significant rate cuts. The impact of inflation cycles and commodity prices on EM economies is examined, emphasizing the importance of controlled food and energy prices. The transcript also covers central banks' easing cycles, currency strengthening, and the resulting virtuous cycle of rate cuts leading to capital inflows and further economic growth.

Describe the virtuous cycle mentioned in the text regarding falling rates.

What does the text suggest about the performance in the sector over the next 12 months?