JPMorgan Makes a Contrarian Call on Emerging Markets

The video discusses recent market trends, focusing on a shift towards emerging markets due to observed divergences between the US and global markets. It highlights the potential for higher volatility and upside in emerging markets, while also considering the relative trade perspective. The discussion includes the bearish sentiment in international markets, opportunities in bear markets, and the expected economic convergence. The impact of trade tariffs on the US market and earnings growth is also analyzed, emphasizing the need for strategic allocation in emerging markets.

What was the investment strategy towards emerging markets in late summer?

• Invest equally in US and emerging markets

• Completely avoid emerging markets

• Start adding emerging markets

• Focus solely on US markets

What is the main reason for considering emerging markets as a relative trade?

• Emerging markets offer better buyback opportunities

• US valuations are in line with historical averages

• Emerging markets have higher historical valuations

• US markets are too expensive in a vacuum

What is one of the primary risks already priced into emerging markets?

• High inflation rates

• Trade war

• Political instability

• Lack of technological advancement

What is expected to happen to US growth next year according to the transcript?

• It will decline sharply

• It will start moderating

• It will remain stable

• It will accelerate significantly

What could potentially cause a significant downside to US earnings numbers?

• Increase in interest rates

• 25% implementation of trade tariffs

• Rise in unemployment rates

• Decrease in consumer spending