Emerging Market ETF Outflows Hit 11 Month High

The video discusses the impact of ETF flows and the US-China trade dispute on emerging markets, highlighting the potential for a prolonged negotiation period. It examines the effects of dollar strength on emerging markets and China's policy flexibility to manage growth. The focus shifts to Chinese equities, emphasizing the private sector's role. The video also explores asset price reactions in emerging markets and the influence of elections in South Africa and India on investment strategies.

What was the recent trend in ETF flows in emerging markets?

• Massive inflows

• Increased inflows from developed markets

• Outflows of $1.7 billion

• No significant change

How might a prolonged US-China trade negotiation affect emerging markets?

• It will lead to increased investments

• It will have no impact

• It will strengthen emerging market currencies

• It will be negative for risk assets

Which countries are more exposed to supply chain disruptions due to the US-China trade dispute?

• China and India

• Korea and Taiwan

• South Africa and Brazil

• Russia and Japan

What advantage does China have in managing its economy during trade disputes?

• Better diplomatic relations

• Higher foreign reserves

• Control over monetary and fiscal policy

• Stronger military power

What has been the focus of recent Chinese policy responses?

• Infrastructure development

• Foreign investments

• Private sector

• State-owned enterprises

How do investors typically react to countries with different levels of trade dependency?

• They focus on countries with high debt

• They prefer export-dependent countries

• They avoid countries with developed markets

• They rarely differentiate between countries

What is a key expectation from South Africa's new government to improve investor confidence?

• Reduce taxes

• Appoint a credible cabinet

• Increase military spending

• Expand the mining sector