Virus Could Present Emerging Asia Buying Opportunity: JPM’s Santos

The video discusses the impact of low yields and risk aversion on fixed income markets, highlighting the unusual performance of bond yields in 2019 and the potential for further declines. It explores the potential impact of a virus on global markets and the economy, suggesting that such impacts are often temporary and may present buying opportunities, particularly in emerging Asia. The discussion includes the concept of a V-shaped economic recovery and the importance of long-term investment strategies.

What was the unusual return percentage in some fixed income indices last year?

• 15%

• 12%

• 9%

• 5%

Why is it still beneficial to hold Treasurys during times of risk aversion?

• They offer high returns.

• They provide a buffer against market volatility.

• They are immune to market changes.

• They guarantee profit.

How does the market typically react to the peak of a virus outbreak?

• It continues to decline.

• It stabilizes permanently.

• It experiences a prolonged downturn.

• It recovers and returns to the previous trend.

What kind of recovery pattern is expected after the economic impact of the virus?

• L-shaped

• U-shaped

• W-shaped

• V-shaped

What is the suggested strategy for long-term investors in the current market scenario?

• Sell all assets.

• Invest only in domestic markets.

• Consider it a buying opportunity, especially in emerging Asia.

• Hold off on investing.