Emerging Markets Are a Value Proposition, Says Hermes' CEO

The video discusses the current state of emerging markets, highlighting recent challenges in the bond, FX, and equity spaces. It debates whether these markets present a value proposition or a value trap, emphasizing the unchanged long-term themes such as demographic growth and a rising middle class. Despite short-term challenges like trade wars, the video suggests that these markets offer buying opportunities.

What are the recent challenges faced by emerging markets?

• Decreased trade barriers

• Stable economic growth

• Toughest quarter in bond, FX, and equity spaces

• Increased foreign investments

What demographic advantage do emerging markets have?

• Declining workforce

• Decreasing middle class

• Aging population

• Growing young population

How is the middle class in emerging markets changing?

• It is shrinking

• It remains the same

• It is growing

• It is moving abroad

What is a key difference between emerging and developed markets?

• Emerging markets have an aging population

• Developed markets have a growing middle class

• Emerging markets have a young workforce

• Developed markets are increasing in productivity

What impact do trade wars have on emerging markets?

• They have no impact

• They stabilize the economy

• They boost exports

• They create buying opportunities