Besides Trump, What's Driving the Markets?

The video discusses market overvaluation, focusing on the correlation between small and large caps, and the impact of a strong dollar. It analyzes emerging markets, highlighting the effects of negative rates on capital flows and asset prices. The discussion shifts to interest rates, predicting a rate hike and its market impact. The challenges of transitioning from monetary to fiscal policy are explored, using historical context. Finally, the video examines emerging markets debt, considering potential opportunities amid rate expectations.

What is one reason the speaker believes small caps are overvalued compared to large caps?

• Stronger dollar impact

• Higher correlation with the S&P

• Lower standard deviation in returns

• Increased foreign investment

How did the speaker describe the impact of negative rates on emerging markets?

• They caused a decrease in foreign investment.

• They had little to no effect.

• They improved capital flows significantly.

• They were underestimated in their impact.

What is the speaker's view on the likelihood of multiple US rate hikes in 2017?

• Already decided

• Certain

• Highly unlikely

• Highly likely

What historical event does the speaker reference to discuss market reactions to presidential elections?

• The 1997 Asian financial crisis

• The 2000 dot-com bubble

• The 1980 election of President Reagan

• The 2008 financial crisis

What challenge does the speaker highlight about transitioning from monetary to fiscal policy?

• It is more efficient than expected.

• It is easier than monetary policy.

• It is less efficient and more complex.

• It has no significant impact.