AMP Capital Says 'Optimistic' on Emerging Markets' Prospects for The Year

The video discusses the current state of emerging markets (EM), highlighting the overcrowded nature of EM trades and the impact of a dovish Fed. It explores market weaknesses in the US and Asia, particularly in China, and suggests diversification strategies, including reducing Chinese exposure and investing in Vietnam. The video also covers fixed income opportunities in Asia, emphasizing the potential convergence of yields. Finally, it addresses the costs of hedging in these markets and the benefits of unhedged investments.

What is one reason for the current overcrowding in emerging markets?

• Strengthening of the US dollar

• Decreased flows into emerging markets

• A dovish stance by the Federal Reserve

• Increased interest rates by the Federal Reserve

Why might investors consider diversifying away from China?

• To avoid high inflation rates

• Due to US-China tensions

• To capitalize on the strong Chinese economy

• To invest in high-tech industries

Which Southeast Asian country is benefiting from low-value manufacturing shifts?

• Thailand

• Malaysia

• Vietnam

• Indonesia

What is a key consideration when investing in Asian corporate bonds?

• The political stability of the region

• The macroeconomic backdrop

• The strength of the US dollar

• The level of government intervention

What is a strategy mentioned for investing in Southeast Asian equities?

• Avoiding currency exposure

• Focusing on high-tech industries

• Investing on an unhedged basis

• Investing on a hedged basis