Making the Case for a Rotation to Emerging Markets

The video discusses the performance of emerging markets (EM) since the US election, highlighting a 9% underperformance compared to developed markets. It explores the impact of a weakening dollar on EM, suggesting that a weak dollar typically benefits EM by attracting yield-seeking investments. The video also provides insights into specific countries like Turkey, noting geopolitical challenges and economic prospects. Finally, it examines the correlation between treasury yields and EM, emphasizing the importance of macroeconomic factors in shaping market outlooks.

What was the performance of emerging markets compared to developed markets since the US election?

• Emerging markets outperformed by 900 basis points.

• Emerging markets underperformed by 900 basis points.

• Emerging markets outperformed by 9%.

• Emerging markets remained stable.

How does a weakening US dollar typically affect emerging markets?

• It has no significant impact on emerging markets.

• It leads to a decrease in investments in emerging markets.

• It causes emerging markets to underperform.

• It tends to increase investments in emerging markets.

What is the expected trend for the dollar-euro exchange rate by the end of 2017?

• Dollar-euro is expected to reach 1.13.

• Dollar-euro is expected to reach 1.20.

• Dollar-euro is expected to decline to 1.00.

• Dollar-euro is expected to remain stable.

What are the main risks facing Turkey's economy according to the analysis?

• Decreasing foreign investments.

• Rising interest rates.

• High inflation and unemployment.

• Worsening geopolitics and higher oil prices.

How might a rise in US Treasury yields to 3.5% or 4% affect emerging markets?

• It would cause emerging markets to outperform.

• It would be very bad for emerging markets.

• It would be beneficial for emerging markets.

• It would have no impact on emerging markets.