The video discusses the complexities of asset allocation in Asia, emphasizing the significant impact of the strong dollar on Asian markets. It highlights the challenges faced by Asian currencies in strengthening against the dollar and the resulting lack of dollar liquidity. The discussion also covers China's ongoing economic stimulus efforts since 2017, which have been insufficient due to the strong dollar. The conversation shifts to the relationship between emerging markets (EM) and the dollar, with a focus on the risks associated with investing in junk bonds. The video concludes by questioning the rationale behind investing in junk bonds given the current market conditions.

What does the speaker suggest about increasing EM exposure in the current market conditions?

What are the risks associated with investing in junk bonds as mentioned in the discussion?