Don't Be Underweight Emerging Markets: Robeco's Fedeli

The video discusses the valuation and earnings growth of AEM markets compared to the US, highlighting the impact of trade conflicts on market performance. It explores the volatility in emerging markets and suggests cautious investment strategies. The discussion also covers investment opportunities in Korea, particularly in the technology sector, and addresses concerns in the IT sector related to supply chain disruptions due to US-China trade tensions.

What is a key factor that could lead to EM markets outperforming the US market?

• Lower interest rates in EM

• Increased trade conflicts

• Higher tax rates in the US

• EM earnings growth outpacing US earnings

Why might it be wise to not be underweight in emerging markets despite current volatility?

• Because of the potential for higher earnings growth

• Due to a decrease in global trade tensions

• Due to a strong US dollar

• Because of rising interest rates

Which sector in Korea is considered to have strong investment potential despite recent challenges?

• Technology

• Pharmaceuticals

• Automobile

• Agriculture

What is a major concern for IT hardware companies involved in international supply chains?

• Lack of innovation in the sector

• Decreasing demand for semiconductors

• Rising labor costs in China

• Fragmented supply chains due to trade tensions