Quantitative Tightening Keeps Us Cautious on Risk Assets, Says BofAML's Hauner

The video discusses the shift from quantitative easing to quantitative tightening and its implications on global liquidity and risk assets. It highlights the limited firepower of central banks, especially in the context of a potential economic downturn. The impact of a strong US dollar on emerging markets is analyzed, noting the risks of capital outflows and economic strain. The video also evaluates market valuations, particularly in emerging markets, and provides a future outlook based on currency movements and economic data from China.

What are the potential risks associated with quantitative tightening in the current economic climate?

How does the strength of the US dollar impact emerging markets according to the discussion?

What is the expected trend for the euro dollar exchange rate by the end of next year?

Discuss the implications of capital outflows from emerging markets as mentioned in the text.

What factors are contributing to the current sell-off in China and how might this affect global markets?