Bloomberg Intelligence's 'Equity Market Minute' 3/13/2019

Gina Martin Adams from Bloomberg Intelligence discusses the current state of emerging market equities, highlighting their valuation at a discount compared to U.S. stocks. Despite this, wobbly currencies and technical challenges may deter investors. The video analyzes PE multiples, showing that emerging markets are trading at their five-year average but below historical peaks. Technical analysis reveals a sideways market with significant resistance levels, similar to those seen in 2011-2014 and 2007. Surpassing these levels could indicate a stronger bull trend.

What is one of the main challenges preventing investors from being drawn to emerging market equities?

• Wobbly currencies

• Stable currencies

• Strong technical indicators

• High interest rates

At what forward PE multiple do emerging market equities typically top?

• 15 times

• 11.5 times

• 9.5 times

• 12.5 to 13 times

What is the current forward PE multiple at which emerging market equities are trading?

• 13 times

• 12.5 times

• 11.5 times

• 9.5 times

What is the term used to describe the market condition where EM stocks have peaked at levels similar to those in 2011 to 2014?

• Support

• Resistance

• Breakout

• Correction

To establish a stronger bull trend, what historical level do emerging market equities need to surpass?

• 2019 levels

• 2011 levels

• 2014 levels

• 2007 levels