Fullerton Fund Management: Positive on Risk Assets 12 Months Ahead

The video discusses the current strength of the US dollar, driven by safe haven flows, and the potential for a downward trend if the Fed tightens monetary conditions. It explores the outlook for risky assets, particularly equities and commodities, and the impact of Fed policy on emerging markets. The discussion highlights the factors affecting dollar weakness, such as the US current account deficit and trade terms. It also examines the US labor market's improvement and the Fed's expectations for unemployment normalization, with a focus on wage inflation and participation rates.

What historical trends regarding the dollar spot index are mentioned in the text?

What concerns does the Fed have regarding the participation rate in the labor market?

How does wage inflation relate to the participation rate according to the discussion?