Emerging-Market Underdog Coming Into Its Own: EM Insight

The video discusses the rally of emerging market (EM) stocks, highlighting the strengths and weaknesses across different regions. While Asia faces challenges due to trade wars and political uncertainties, the EMEA region shows promising growth with rising earnings estimates and favorable currency conditions. The video explores the investment potential in EMEA, emphasizing its relative valuation and carry trade opportunities, making it a compelling choice for value investors.

What is one reason for the weakness in Asian markets?

• Stable political environment

• High inflation rates

• Strong currency performance

• Trade war uncertainties

Why are EMEA stocks not considered expensive despite a rally?

• Low interest rates

• Rising earnings estimates

• High inflation

• Decreasing demand

What makes EMEA stocks a compelling case for value investing?

• High dividend yields

• Low inflation rates

• Falling relative valuations

• Stable political environment

What is the expected carry trade potential of EMEA currencies compared to Asia?

• Lower than Asia

• Non-existent

• Higher than Asia

• Equal to Asia

On a risk-adjusted basis, what do EMEA currencies offer compared to other assets?

• Equal risk

• Higher risk

• Lower returns

• Safer returns