Research Affiliates: Re-Balancing Outside the U.S. Towards Europe

The video discusses the valuation of the US market, highlighting its high Shiller PE ratio and potential for negative real returns. It contrasts this with the promising returns expected from emerging markets. The impact of a stronger US dollar and economic growth trends are analyzed, with a focus on the global recovery from COVID-19. The video also explores the implications of potential tax changes and shifts in market participation. Finally, it identifies opportunities in Asian emerging markets, particularly in countries managing COVID-19 well and benefiting from semiconductor demand.

What is the expected long-term real return for US market investors according to the transcript?

• Neutral return

• Significantly positive return

• Slightly negative return above inflation

• Slightly positive return above inflation

Which sectors are expected to benefit from the economic reopening?

• Telecommunications and Utilities

• Energy and Financials

• Technology and Healthcare

• Retail and Real Estate

What is the anticipated trend for the US dollar in the coming months?

• Fluctuate unpredictably

• Strengthen significantly

• Weaken further

• Remain stable

Which region is expected to catch up in economic growth by 2022?

• Europe

• North America

• Emerging markets

• Australia

What is the main concern regarding potential tax hikes?

• Decrease in foreign investments

• Reduction in government spending

• Increase in consumer prices

• Erosion of corporate earnings

How has market participation changed post-pandemic?

• Decreased to single-digit participation

• Fluctuated without a clear trend

• Remained the same

• Increased to one-third of the market

Which Asian countries are highlighted for their semiconductor industry strength?

• Malaysia and Indonesia

• Thailand and Vietnam

• China and South Korea

• India and Japan