BNP's Howard: Constructive on Emerging Markets in 2021

The video discusses current market trends, focusing on tech IPOs and the post-COVID economy. It analyzes investor behavior following recent events in Washington, highlighting a shift towards risk-on strategies. The discussion extends to global markets, emphasizing the resilience of Asian currencies and the search for returns in a low-yield environment. The video also explores emerging markets, the impact of a weakening dollar, and the global asset allocation shift. Finally, it addresses the reflation trade, potential fiscal stimulus, and the economic outlook under the Biden administration.

What is the significance of tech IPOs in the post-COVID economy according to the discussion?

• They are expected to decline in importance.

• They are only significant in the short term.

• They are irrelevant in the new economy.

• They have increasing relevance and applicability.

How did recent political events influence investor behavior?

• Investors became more risk-averse.

• Investors shifted towards a more risk-on approach.

• Investors ignored the events completely.

• Investors focused solely on domestic markets.

What is the outlook for emerging markets in 2021?

• They are expected to remain stagnant.

• They are seen as having potential opportunities.

• They are expected to decline.

• They are considered too risky to invest in.

What factors are important when selecting investments in emerging markets?

• Financial resilience and good governance.

• High volatility and unpredictability.

• Political strife and instability.

• Lack of commodity exposure.

What is the core view regarding the US dollar's performance in 2021?

• The dollar is expected to depreciate against most major currencies.

• The dollar is expected to remain stable.

• The dollar's performance is unpredictable.

• The dollar is expected to appreciate against major currencies.

What is the expected impact of fiscal stimulus and infrastructure packages on growth?

• They are expected to negatively impact growth.

• They are expected to have no impact.

• They are expected to positively impact both domestic and global growth.

• They are expected to only impact domestic growth.

What is the expected trend for US Treasury yields by the end of the year?

• They are expected to fall to zero.

• They are expected to remain unchanged.

• They are expected to rise to 1.41-1.50%.

• They are expected to decrease slightly.