Morgan Stanley Likes Financials in Some Emerging Markets

The video discusses the impact of the weakening US dollar on emerging market (EM) investing, highlighting growth and rate differentials. It examines the performance of EM banks during recent global banking turmoil, noting their strong capitalization and liquidity. The video also explores changes in foreign ownership of local currency debt in EMs, suggesting a reduced risk of global financial transmission. Historical performance during past recessions is used to predict potential future trends.

What are the two biggest metrics that influence the performance of emerging market assets relative to developed markets?

What factors contribute to the current weaker dollar cycle mentioned in the text?

How did emerging market banks perform during the recent banking turmoil compared to US and European banks?

In what ways have the ownership patterns of local currency debt in emerging markets changed?

What historical context is provided regarding emerging markets' performance during US recessions?