Buy Emerging Markets Now, Says Ashmore Dehn

The video discusses Turkey's unique economic challenges, highlighting its self-inflicted issues and the President's unconventional views on interest rates. It contrasts Turkey's situation with other emerging markets, noting investment opportunities in countries like the Philippines. The discussion covers current market valuations, emphasizing the attractiveness of local currency bonds. The video concludes with an outlook on future economic conditions, predicting a potential recession in Turkey due to its prolonged loose monetary policy, while highlighting positive real yields in the broader emerging market space.

What makes Turkey's economic situation unique compared to other emerging markets?

• Its high level of foreign investment

• Its strong currency

• Its reliance on foreign aid

• Its President's belief that higher interest rates cause inflation

How does the current economic situation differ from the 1990s EM crisis?

• More significant capital flight

• Stronger current account balances and lower inflation

• Higher inflation rates

• Weaker currency valuations

What is a key factor that suggests a stable outlook for emerging markets despite recent pullbacks?

• Increasing inflation rates

• Strong technical indicators and healthy country profiles

• Weak government bond yields

• High levels of investor redemptions

What is the expected economic outcome for Turkey due to its monetary policy?

• Increased foreign investment

• Rapid economic growth

• Stable economic conditions

• A potential recession

Why are local currency bonds in emerging markets considered attractive?

• They offer negative real yields

• They have high inflation rates

• They are risk-free investments

• They provide positive real yields compared to developed markets