We Have to Keep an Eye on Contagion in EM, Says Wells Fargo's Hartman

The video discusses the ongoing trade war and its impact on the stock market, highlighting the resilience of the US economy due to strong earnings and stimulus. It explores the concept of contagion in emerging markets, with a focus on the EM index and Asian markets. The role of the Federal Reserve in influencing global markets through interest rate hikes and balance sheet reductions is examined, emphasizing the challenges posed by a strong dollar and the lack of synchronization among central banks.

What is the main reason for the continued strength of US stocks despite global economic concerns?

• Weakening of the US dollar

• Strong earnings and economic stimulus

• Decline in tech stocks

• Emerging market growth

Which term is used to describe the potential spread of economic crises from weaker to stronger economies?

• Contagion

• Recession

• Deflation

• Inflation

Which countries are mentioned as having weaker economies facing problems?

• Germany and France

• China and Korea

• Japan and India

• Brazil and Argentina

What action by the Federal Reserve is said to pressure emerging markets?

• Decreasing taxes

• Increasing government spending

• Increasing interest rates

• Lowering interest rates

What is a consequence of the US becoming more restrictive in its monetary policy?

• Weaker dollar

• Stronger dollar

• Decreased interest rates

• Increased global liquidity