 Good day, Phil investors. All good on the stock markets until Friday. Then everything crashed because everybody was panicking about Turkey, about the Turkey stock market, about contagion, about the weakening euro, whatever. And then, of course, when such an emerging market gets hits, all other emerging markets fall too. The emerging market ETF is down what? 2.28% in just one day. News around the world stocks, everything drops on Turkey, commodities stumble, again, hit emerging markets, which are big commodities producers. But let me tell you a bit about the fundamentals. It's not just about Turkey, it's always about the fundamentals. And these news just trigger those fundamentals. The Fed is rising interest rates and the American economy is doing very well. This makes the dollar stronger and the countries that borrowed in dollars think Turkey get into trouble. Turkey has borrowed from 250 billion dollars to about 450-460 billion dollars in external debt, which means that they are exposed to what goes on with the dollar. And if the dollar gets stronger, if interest rates on the dollar get higher, then Turkey gets into trouble when it comes to refinancing and whatever. Interest rates have been very low on the dollar and it was really appealing to get US dollar denominated loans. But all those governments companies don't think long-term when they do those things. Or you simply go for the lower cost, but that's something that might cost in the future. The dollar has strengthened even in the last few months a bit, so add debt to the higher interest rates and then you get into trouble if you have high debt. For example, the five-year US Treasury rate is now close to 3%, which means that when you want to lend money to an emerging market, you can lend it to the US government at 3%, you will expect 8% from an emerging market. Two years ago, the interest rate on the five-year Treasury bond in the US was 1%, which means you would say, okay, I'm happy if I get 3% from an emerging market. And that's a huge difference. And this story with rising interest rates might lead to something completely different. Let me first show you this. These are the flows related to ETFs. This week, of course, most inflows to the US equity, corporate bonds, all-maternity and then US government bonds. This is for Europe, but it shows you where the money, even from Europe, is going. Inflows over the last six months, again, US equity, world equities and then Europe government bonds. However, if we look at the top outflows for this week, commodities, of course, Europe government bonds and global equity outflows. Of course, everybody's rushing away from emerging markets and global equity. Top outflows over the last six months, European equities. So even Europeans are selling Europe, buying the rising dollar, rising yields, US equities, getting out from high yield bonds and getting out from corporate bonds in Europe in this case. So everybody's really skewed towards the United States. And you can see how Asian equities outflows, European equities outflows and everything goes to the US market. Now, as the Fed continues to rise their interest rates, as the Fed continues to rise rates, continues to deleverage, continues to tighten, it will be paying for emerging markets. There is no way around it. However, higher dollar, higher interest rates and higher input costs coming from higher tariffs are not good either for the US economy in the medium term. So the Fed will have to stop eventually with the tightening, perhaps turn into loosening a little bit and then emerging markets will have a breath of relief. So now I hope it will be a little bit more pain in emerging markets so that I can buy finally something on cheap, really cheap, how I like it. But if not, there will be a reversal probably in the next two, three quarters, which is highly likely if the Fed just hints that they will stop raising interest rates this fast. As for whether emerging markets are a buy or not, it's not about the sector, it's about what you're buying. If you buy great assets, great businesses, whether there are in emerging markets, growing markets, developed markets at a great price, you will do fine. So it's more about just finding the great companies, building a great portfolio that will give you good quality returns over the long term. Ups and downs, currencies go up and down, emerging markets go up and down, everything goes up and down. Sometimes you're up, sometimes you're down. So only the businesses investing in great businesses is what will bring you up for the long term. Thank you for watching. Check my weekly videos from this week. I did chapter 15, a summary of the Intelligent Investor, how Benjamin Graham picked his stocks and his portfolio, what is investing risk and an investment idea where we discussed Chinese toll roads, the benefits and the risks of such an investment.