BlackRock Favors U.S., Emerging Markets, Mateos y Lago Says

The video discusses the continuation of Goldilocks conditions, characterized by low inflation and consistent growth, which supports risk assets like equities and fixed income. It highlights the potential benefits for emerging markets, particularly China, due to trade deals and economic stimulus. The video also addresses the global debt rally, noting risks associated with negative yields and the impact of potential trade wars. Overall, the outlook is positive for carry assets, with expectations of stable Fed policy and low inflation.

What are the 'Goldilocks' conditions mentioned in the video?

• Low inflation and consistent growth

• High inflation and high growth

• Low inflation and declining growth

• High inflation and low growth

Why is the current economic environment supportive of equities?

• Because fixed income is preferred over equities

• Because growth is consistent and central banks are not tightening

• Because inflation is high

• Because central banks are tightening monetary policy

What factors are contributing to a bullish outlook for emerging markets?

• A trade deal with China and monetary stimulus

• High inflation in emerging markets

• Tightening monetary policy in Asia

• Declining US stock performance

What is a significant risk associated with the global debt rally?

• High inflation rates

• Rising commodity prices

• Negative yielding debt

• Increasing interest rates

What is expected to be the primary source of returns in the fixed income market going forward?

• Currency appreciation

• Coupons

• Capital gains

• Spread compression