EM Stocks Look Relatively Cheap, Says JPMorgan AM’s Kelly

The video discusses the recovery of Asian markets and the potential for a vaccine by year-end. It highlights the resilience of the US market due to low exposure to social distancing sectors and low interest rates. Valuations in the US are not at bargain levels, but emerging markets offer cheaper options. The global economy is on hold until a vaccine is available, with East Asia potentially rebounding faster. Emerging markets face challenges due to limited fiscal and monetary policy space, but younger populations may mitigate some risks. The recession is expected to be short, with recovery starting in 2021 and a booming economy by 2022.

What factor is contributing to the resilience of the US stock market despite the pandemic?

• Large exposure to social distancing sectors

• High interest rates

• Low interest rates

• Strong bond market

Why are emerging market stocks considered relatively cheap?

• They have high valuations

• They have strong fiscal policies

• They are less affected by the pandemic

• They are outside the United States

Which regions are expected to recover better from the virus according to the transcript?

• Africa

• South America

• Europe and the United States

• East Asia

What is a significant challenge for emerging markets in dealing with the pandemic?

• Strong economic growth

• High interest rates

• Limited fiscal and monetary policy room

• Lack of young population

By which year is the global economy expected to be booming again?

• 2020

• 2021

• 2022

• 2023