Why Are Investors Diving Back Into Risk Assets?

The video discusses the impact of global events like Brexit and the Turkey coup on financial markets, highlighting the limited effect of Brexit on the US economy due to its service-oriented nature. It also examines central bank policies, particularly quantitative easing, and their influence on the availability of investable bonds, emphasizing the attractiveness of emerging markets for higher yields.

What unexpected global events are mentioned as having little impact on market highs?

• North Korea's missile tests

• US presidential election

• Brexit vote and Turkey coup

• China's economic slowdown

Why does Brexit have minimal implications for the US economy?

• The US has strong trade agreements with the EU

• The US economy is service-dominated and relies on domestic growth

• The US is a major exporter to the UK

• The US dollar is not affected by Brexit

What is the primary reason the US economy is not significantly affected by Brexit?

• The US economy is largely driven by domestic services

• The US imports more from the EU than the UK

• The US has strong political ties with the UK

• The US has a large manufacturing sector

What challenge do investors face due to Central Bank QE?

• Finding securities with yield

• Increased inflation rates

• Higher interest rates

• Currency devaluation

Which market is highlighted as having potential for extraordinary yield?

• European bond market

• US stock market

• Emerging markets

• Japanese real estate