EM Equities Will Continue to Struggle in 2020: LGIM

The video discusses the performance of bonds and currencies in 2019, highlighting the underperformance of emerging market equities compared to developed markets. It provides a 2020 outlook, suggesting that emerging market equities may continue to struggle, while emerging market bonds offer attractive opportunities. The discussion also covers the implications of FX risks, regional investment preferences, and the impact of US-China trade issues on emerging markets. The dollar's outlook for 2020 is considered stable, with potential disruptions linked to the US election.

Which asset class underperformed in emerging markets compared to developed markets in 2019?

• Developed market bonds

• Emerging market equities

• Emerging market bonds

• Developed market equities

What is the expected performance of emerging market equities relative to developed markets in 2020?

• Outperform developed markets

• Struggle on a relative basis

• Achieve stellar growth

• Remain stable

Which countries offer positive real interest rates in the emerging market local debt space?

• Canada, Australia, New Zealand, UK

• Germany, France, Italy, Spain

• China, India, Japan, South Korea

• South Africa, Brazil, Mexico, Turkey

What are the top two issues impacting emerging markets in 2020 according to the Bloomberg survey?

• Brexit and European Union policies

• US-China trade issues and China's economic growth outlook

• US monetary policy and European economic growth

• Oil prices and Middle East tensions

What is the potential risk factor for the US dollar in 2020?

• Trade agreements with Europe

• US election outcomes

• Interest rate hikes by the Federal Reserve

• Inflation rates in Asia