One More Leg Down Needed in Emerging Markets to Get Exposure, Forster Says

The video discusses the impact of trade wars on emerging markets, suggesting a strategic reweighting for long-term exposure. It highlights market dispersion, with varying central bank actions in Turkey, Argentina, and Asia. The potential yield curve inversion and its effects on market volatility are examined. US market fundamentals are strong, but high valuations and liquidity concerns may lead to corrections. Trade tensions are expected to have a limited impact on US growth, with the economy remaining robust.

What is a key factor that could lead to a rally in emerging markets?

• Decrease in global oil prices

• Increase in US interest rates

• Strengthening of the US dollar

• Resolution of trade tensions

How have central banks in Asia responded to economic challenges compared to those in Turkey?

• By increasing government spending

• By maintaining independence and taking quick action

• By lowering interest rates

• By devaluing their currencies

What economic indicator is being closely watched for its potential impact on market corrections?

• Consumer confidence index

• Interest rate levels

• Inflation rate

• Unemployment rate

What is the expected impact of trade tensions on the US economy according to the transcript?

• Significant slowdown in economic growth

• Increase in unemployment rates

• Minimal impact due to the small percentage of trade-related GDP

• Sharp decline in consumer spending

What is the anticipated trend for equity market returns in the short term?

• Volatility without clear direction

• A significant decline

• Broad-based continuation

• Stagnation