BlackRock's Li Says U.S. Markets to Outperform Europe's

The video discusses the current macroeconomic environment, highlighting challenges such as policy uncertainty and rising rates. It compares the impact of the Ukraine war on US and European economies, favoring US markets. The strong dollar's effect on currency volatility, particularly the yen, is examined, along with policy divergences among central banks. The role of government bonds as portfolio diversifiers is questioned, with potential benefits as yields rise. Finally, the video explores Japanese equities, emphasizing currency hedging strategies due to policy divergences and market conditions.

How has the correlation between the Japanese yen and Japanese equities changed in recent years?

What factors contribute to the attractiveness of government bonds as a diversifier in portfolios?

Why is it important to hedge currency when investing in Japanese equities?