EPFR: EM Funds Struggling

The video discusses the current state of emerging markets, focusing on Asia's lag compared to the US and Europe. It highlights three major headwinds: COVID-19 containment stories, China's policy flexing, and the unexpected shift in US politics. The video also examines the risk appetite for investing in China, noting a decline in interest. It explores investment strategies, emphasizing multi-asset approaches and opportunities in utilities due to ESG trends. Finally, it addresses market influences like global bond markets and skepticism towards central bank narratives.

What are the major headwinds affecting Asian markets as discussed in the video?

• Political instability in Europe

• Rising oil prices

• COVID-19 variants and China's policy changes

• High inflation rates

Why is there a cautious approach towards investing in China currently?

• High interest rates

• Strong competition from Europe

• Declining valuations of major tech companies

• Lack of government support

What factors are influencing investment decisions in the current market environment?

• Weather patterns

• Vaccination rates and fiscal stimulus

• Celebrity endorsements

• Social media trends

Why are investors showing interest in multi-asset strategies?

• To focus on a single market

• To avoid any risk

• To hedge their bets and play both sides of the coin

• To invest solely in technology

Which sector is expected to benefit from ESG trends and policy support?

• Healthcare

• Utilities

• Technology

• Real Estate

What is a potential opportunity in countries with poor initial COVID containment?

• Decreasing population

• Political instability

• A chance to catch the rebound at lower levels

• High inflation

What is the main reason for skepticism towards central bank narratives?

• Political influence

• High interest rates

• Doubt in the transitory inflation narrative

• Lack of transparency