What Is the Conviction Trade for the Rest of 2019?

The video discusses portfolio strategies, emphasizing a balanced approach with risk management by investing in fixed income and emerging market equities. It highlights the value potential in emerging markets, particularly in terms of PE ratios and cash flow. The impact of China's recent stimulus on global markets is analyzed, suggesting it may offset trade concerns. The video concludes with an outlook on the US market, noting the potential in small cap equities despite the S&P nearing all-time highs.

What strategy does the speaker mention for balancing risk in their portfolio?

• Investing heavily in technology stocks

• Focusing solely on small cap equities

• Reducing exposure to fixed income and increasing emerging market equities

• Increasing exposure to fixed income and reducing emerging market equities

Why does the speaker find emerging market equities attractive?

• Due to government restrictions

• Due to high volatility

• Because of low liquidity

• Based on value metrics like PE and price to cash flow

What recent development in China is highlighted as a positive factor for emerging markets?

• A reduction in foreign investments

• A decrease in export tariffs

• Infrastructure-related stimulus initiatives

• A rise in interest rates

What long-term growth story is emphasized in the context of emerging markets?

• The increase in agricultural exports

• The decline of manufacturing

• The rise of the middle class

• The fall of the technology sector

What is the speaker's view on small caps in the US market?

• They are expected to decline further

• They offer potential upside if one has a positive outlook

• They are irrelevant to current market trends

• They are outperforming large caps