Eastspring's Wong Sees EM Valuations 'Very Attractive'

The video discusses the impact of rising treasury yields on equities, focusing on earnings growth and market conditions. It highlights the exposure of corporate bonds to yield curves and potential market shocks. The video compares valuations in US and Asian markets, noting the effect of a weakening US dollar. It also analyzes the correlation between the US fiscal deficit and the dollar index, considering economic stimulus measures and COVID-19 impacts.

What is a potential positive factor for equity investors if earnings growth assumptions for 2021 improve?

• Higher inflation rates

• Prolonged low Fed fund rates

• Increased corporate debt

• Rising treasury yields

Which type of corporate bonds are most exposed to the yield curve?

• Government bonds

• Single A-rated bonds

• AA-rated corporate bonds

• Junk-rated bonds

What is a key reason for the potential weakening of the US dollar?

• Decreasing fiscal deficit

• Rising treasury yields

• Strengthening Asian markets

• Increased fiscal programs

How do rising treasury yields typically affect the US dollar?

• They cause the dollar to fluctuate

• They strengthen the dollar

• They have no effect

• They weaken the dollar

What is the current state of the US dollar index compared to the middle of last year?

• It has increased significantly

• It has remained stable

• It has retreated quite a bit

• It has fallen to an all-time low