Pimco Sees a Tug of War Between Search for Yield and Safe Assets

The video discusses the impact of the US dollar and presidential influence on currency policy, particularly in emerging markets. It highlights the importance of benchmark composition, focusing on the MSCI EM index's heavy weighting towards China and Taiwan, and the ongoing US-China trade war. The discussion also covers the effects of political noise from Beijing and DC, leading to increased investment in safe haven assets like the dollar and gold, amidst a backdrop of uncertainty.

How does the President's influence on currency policy affect emerging markets?

• Emerging markets dictate U.S. currency policy.

• Emerging markets benefit from U.S. currency policy.

• Emerging markets are heavily influenced by U.S. currency policy.

• Emerging markets are unaffected by U.S. currency policy.

What is a key characteristic of the MSCI EM benchmark?

• It is equally weighted across all global markets.

• It focuses on North American markets.

• It is heavily weighted towards Asian markets, especially China and Taiwan.

• It is heavily weighted towards European markets.

What has been the impact of the U.S.-China trade war on the MSCI EM benchmark?

• It has stabilized the benchmark.

• It has caused the benchmark to suffer.

• It has benefited the benchmark.

• It has had no impact.

What shift in investor behavior is observed due to political noise?

• A shift from safe assets to high-risk investments.

• A shift from the dollar to emerging market currencies.

• A shift from a search for yield to a preference for safe haven assets.

• A shift from gold to real estate investments.

Which assets are considered safe havens during times of political uncertainty?

• Commodities and technology stocks.

• The yen, the dollar, and gold.

• Emerging market stocks and bonds.

• Real estate and cryptocurrencies.