Guggenheim's Minerd Likes Gov't-Backed CMBS, Emerging-Market Equities

The video discusses various investment options, including cash, Treasury bills, and long-duration bonds, in the context of an impending recession. It highlights the growth of the CMBS market, particularly government-guaranteed securities, and the lack of institutional investor exposure. The video also explores international investment opportunities, such as Japanese government bonds and Brazilian debt, and emphasizes the potential in emerging markets equities compared to the US stock market.

What is one of the suggested investment options if a recession is anticipated?

• Real estate

• High-risk stocks

• Short-term corporate bonds

• Long-duration bonds

Why are government-guaranteed CMBS securities considered under-owned?

• They are not backed by any government entity

• They have high default rates

• They are not profitable

• They are a new asset class post-crisis

What has contributed to the growth of CMBS securities post-financial crisis?

• Government subsidies

• Higher yields compared to other bonds

• Aggressive issuance by Fannie and Freddie

• Increased interest from retail investors

What is a potential benefit of investing in emerging markets?

• Guaranteed returns

• Historically widespread valuation compared to US markets

• Lower risk compared to developed markets

• Higher liquidity than US markets

What is a key reason for considering international securities for US investors?

• They offer tax benefits

• They can be hedged back into US dollars at a premium

• They are easier to manage

• They are less volatile