BlackRock’s Li Sees Investors Catching Up With 2019’s ‘Big Pain Trade’

The transcript discusses the potential impact of tariffs on global markets, particularly focusing on President Trump's decisions and their effects on investor behavior. It highlights the positioning of investors in emerging markets, Europe, and China, and examines the inflows and outflows in European equities. The discussion also speculates on future tariff actions and their implications for under-owned market exposures.

What is the main concern regarding President Trump's potential actions if phase one of trade negotiations is not completed?

• He might resign from office.

• He might increase tariffs.

• He might visit China.

• He might lower interest rates.

What has been the trend in European equity funds so far this year?

• Complete withdrawal from the market.

• Slightly less than $100 billion of outflows.

• Significant inflows with no outflows.

• No change in fund positioning.

Why are European markets considered the 'dark horse' this year?

• Due to poor performance.

• Due to complete market saturation.

• Because of high investor confidence.

• Because of good performance and light positioning.

What is the likelihood of tariffs being implemented on December 15th according to the transcript?

• Already confirmed.

• Completely ruled out.

• Not looking likely.

• Highly likely.

What is the uncertainty regarding investor reactions if tariffs are implemented?

• Investors will definitely increase their investments.

• Investors will completely withdraw from the market.

• Investors are significantly under-owned and reactions are uncertain.

• Investors will shift focus to the US market.