China’s growth trajectory and Federal Reserve monetary policy are the two key macro forces dominating global asset prices, particularly for EM. In 2018, EM equities suffered from both Fed tightening and a Chinese slowdown. Looking into the new year, conditions should improve on both fronts, setting a bullish backdrop, argues Alpine Macro. They say EM assets will benefit from continued Chinese reflation and a normalization process of the macro environment in developing countries as Fed policy shifts. There are early signs that China’s monetary cycle may soon begin to accelerate anew.