Without a Fed Hiccup, EM Rally May Continue Through 2019, Says Lombard Odier's Lee

The video discusses the impact of a weaker U.S. dollar on emerging markets, highlighting the potential for a multi-year outperformance if the Fed avoids major policy mistakes. It also examines the bond markets in Korea and China, suggesting possible interest rate cuts. The video further explores market reactions to the Fed's dovish language and the risks associated with its communication framework, particularly the dot plots. Despite these risks, the outlook for emerging markets remains positive, especially with potential improvements in U.S.-China trade relations.

What is highlighted as a key factor for emerging markets going forward?

• U.S. dollar strength

• U.S. dollar weakness

• European market stability

• Asian market volatility

What is the expected monetary policy trend in Korea and China?

• Increased market intervention

• Stable interest rates

• Interest rate cuts

• Interest rate hikes

How did global markets perform in January compared to the past five years?

• They rose by more than 7%

• They declined by 0.8%

• They remained stable

• They fell by 5%

What is a source of confusion in the Fed's communication framework?

• Interest rate announcements

• Economic forecasts

• Dot plots

• Press conferences

What is the outlook for U.S.-China trade relations before March?

• Increased tariffs

• A ceasefire

• A complete breakdown

• No change