What's the Appeal of Emerging-Market Currencies?

The video discusses trends in equity and fixed income markets, highlighting the impact of Brexit and the stabilization of emerging market currencies. It explores the shift in risk appetite due to negative yields in developed markets and the potential end of emerging markets' underperformance. The video also examines the divergence between oil prices and other asset classes, noting the restructuring of the energy sector. Finally, it provides investment recommendations, favoring cyclical sectors, emerging markets, and US technology.

What is one of the main reasons for the shift in risk appetite towards emerging markets?

• High yields in developed markets

• Frustration with negative yields in developed markets

• Political stability in developed markets

• Decreasing inflation rates globally

What factor has contributed to the stabilization of emerging market currencies?

• Increase in global oil prices

• Stabilization of developed world sovereign yields

• Decrease in global trade tensions

• Strong performance of the US dollar

What was a significant concern regarding emerging markets that has recently ameliorated?

• The risk of a global recession

• The risk of Brazil becoming like Argentina

• The risk of China affecting Asia

• The risk of a US economic downturn

How has the energy sector responded to the recent oil price changes?

• By investing in renewable energy

• By reducing exports

• By restructuring and recapitalizing

• By increasing production

Which sectors are currently favored by investors according to the video?

• Emerging markets, metals, US industrials, and technology

• European banking and insurance

• US real estate and healthcare

• Asian telecommunications and pharmaceuticals