Bloomberg Intelligence's 'Equity Market Minute' 6/21/2018

Gina Martin Adams discusses the challenges facing emerging market equities, focusing on the impact of a strong dollar and the correlation between emerging market bonds and stocks. The strengthening dollar, coupled with U.S. rate hikes, has pressured emerging markets, making it difficult for them to outperform developed markets. Additionally, emerging market bonds have had a historically poor start, further affecting stocks due to their strong correlation.

What are some of the risks faced by emerging market equities this year?

• Combination of dollar bonds and policy risks

• High inflation rates

• Political stability

• Technological advancements

How does the strengthening of the dollar historically affect emerging market stocks?

• It boosts their performance

• It has no effect

• It stabilizes their value

• It causes them to decline

What has coincided with the dollar's strength this year, affecting emerging markets?

• Political reforms

• Technological breakthroughs

• Rate rises in the United States

• Decrease in oil prices

What is the relationship between emerging market bonds and stocks?

• They are inversely correlated

• They are strongly correlated

• They have a weak correlation

• They are not correlated

What is the current state of emerging market bonds?

• They are stable

• They are improving

• They are at their worst start in history

• They are performing well