AMP Capital's Naeimi: Why We're Not Chasing Yield

The video discusses the impact of the US dollar on Japanese equities, highlighting a positive outlook due to dollar strength. It explores trends in emerging markets, noting the influence of US dollar movements and market rotations. The discussion shifts to yield chasing, emphasizing the risks of crowded trades and the effects of monetary easing. The potential US rate hike is analyzed, with a focus on its global implications and the easing of deflationary pressures. Finally, the video addresses yuan fixing and liquidity concerns in the Chinese market, noting the stability against a basket of currencies.

What is the expected impact of a strengthening US dollar on Japanese equities?

• No impact as Japanese equities are isolated

• Negative impact due to decreased exports

• Positive impact due to increased competitiveness

• Negative impact due to increased costs

What is the effect of the US dollar's appreciation on emerging market stocks?

• It creates a negative headwind

• It boosts emerging market growth

• It has no effect

• It creates a positive tailwind

Why might investors be cautious about yield chasing?

• It is unaffected by monetary policy

• It leads to high volatility

• It guarantees high returns

• It is a crowded trade with high risk

What is the significance of the expected US rate hike in December?

• It will surprise the markets significantly

• It will cause deflation in the US

• It is unlikely to have a major impact

• It will lead to a global recession

What is the current trend in global inflationary pressures according to the transcript?

• Deflation is increasing

• Inflationary pressures are easing

• Inflationary pressures are increasing

• Deflation is stable

How has the yuan been performing against a basket of currencies?

• It has been weakening significantly

• It has been stable

• It has been appreciating rapidly

• It has been fluctuating unpredictably

What is a potential concern in the bond market mentioned in the transcript?

• Low interest rates

• Excessive liquidity

• Lack of liquidity

• High inflation