Manulife: Central Banks Reaching End of the Road

The video discusses the impact of quantitative easing (QE) in the US and Japan, highlighting the limited effects in Japan despite decades of implementation. It explores the Japanese market, noting opportunities in equities and improvements in corporate governance, while expressing skepticism about macroeconomic improvements. The discussion shifts to China and other emerging markets, emphasizing consumer strength in China despite economic slowdowns and comparing growth rates with other countries like the Philippines.

What is a major limitation of central banks when they are the only policy instrument?

• They can control inflation effectively.

• They can manage fiscal policies.

• They have limited impact on long-term economic growth.

• They can easily stabilize currency values.

Why might investors still consider Japanese equities despite macroeconomic challenges?

• Because of the upcoming Tokyo 2020 Olympics.

• Due to the lack of competition in the market.

• Because of the high value of the yen.

• Due to strong corporate governance and specific industry strengths.

What is the expected impact of the Tokyo 2020 Olympics on the Japanese market?

• It will lead to a surge in foreign investments.

• It will cause a market crash.

• It is not expected to have much current impact.

• It is expected to significantly boost the market.

How does China's growth rate compare to Japan's?

• China's growth rate is about the same.

• China's growth rate is significantly lower.

• Japan's growth rate is higher than China's.

• China's growth rate is significantly higher.

What is a key risk associated with China's economic condition?

• The lack of consumer spending.

• The leverage-driven recovery losing momentum.

• The reliance on minute movements in the PMI.

• The high level of public expenditure.