Emerging Markets: Does the Rally Have Further to Run?

The video discusses the performance of emerging markets (EM) assets, highlighting a 15% increase in the equity space due to stable US dollar and strengthening commodities. It also covers the banking sector, emphasizing the attractiveness of local and regional banks over large systemic ones. The discussion shifts to the US elections, where a 70% probability is assigned to a Clinton presidency, considering lessons from Brexit polling. The focus is on the importance of US Congress control for policy implementation.

What are the key factors that have contributed to the growth of emerging markets this year?

• A decline in commodity prices

• Increased political instability

• A significant strengthening of the US dollar

• A stable US dollar and strengthening commodity complex

Why are local and regional banks preferred over large systemic banks?

• They have higher risk premiums

• They are less affected by global systemic risks

• They offer lower interest rates

• They are more involved in international markets

Which region's banks are favored due to potential rate increases?

• European banks

• Asian banks

• United States banks

• African banks

What probability does the House view assign to a Clinton presidency?

• 50%

• 90%

• 85%

• 70%

What is a major focus for policy implementation if Clinton wins the presidency?

• Healthcare reform

• International trade agreements

• Environmental policies

• Control of the US Congress