Stocks Priced to Do Well if Some of the Fears Go Away: M&G Investments

The video discusses the impact of trade news, such as President Trump's tariff delays, on emerging market (EM) assets. It highlights the potential for EM assets to perform well if central bank easing and trade war risks decrease. The bond market is analyzed, showing current risks and poor prospective returns, especially in developed markets. In contrast, global equities and emerging market bonds are presented as more favorable investment options due to better earnings yields and growth potential.

What could lead to a positive performance of emerging market assets according to the video?

• A significant increase in global interest rates

• Easing of trade tensions and central bank policies

• An increase in pessimistic sentiment

• A decline in global economic growth

What is the current risk associated with developed market bonds as discussed in the video?

• High inflation rates

• Low yields and potential for losses

• Increased government intervention

• Rising interest rates

Which bond is used as an example to illustrate risks in the bond market?

• UK 20-year bond

• US 10-year Treasury bond

• Japanese 15-year bond

• German 30-year bond

According to the video, what offers a better investment return compared to cash or safe haven government bonds?

• Real estate investments

• Global equities and emerging market bonds

• Cryptocurrencies

• Commodities like gold and silver

What is the earnings yield mentioned for global equities in the video?

• Around 6.5-7%

• Around 5-6%

• Around 3-4%

• Around 8-9%