Bloomberg Intelligence's 'Equity Market Minute' 1/8/2020

The video discusses the current state of emerging market stocks, highlighting that they are trading at peak cycle multiples. To surpass this, significant earnings acceleration is needed. The forward PE multiple for the MSC IEM index is analyzed, showing a peak at 13 times forward estimates. Operating margin expansion is identified as a key factor for growth, with a comparison of margins between emerging markets and the US. The video concludes with a call for margin expansion to achieve higher multiples.

What is the current trading status of emerging market stocks according to the introduction?

• They are undervalued.

• They are at peak cycle multiples.

• They are overvalued.

• They are at trough cycle multiples.

What is the historical peak forward PE multiple for the MSC IEM index?

• 15 times

• 11 times

• 13 times

• 10 times

What is considered a key factor for emerging market stocks to surpass the current ceiling?

• Debt reduction

• Operating margin expansion

• Market share increase

• Dividend yield

In which year did emerging market stocks last outperform due to rapid operating margin expansion?

• 2017

• 2015

• 2016

• 2018

What is necessary for emerging market stocks to surpass the former peak multiple of 13 times earnings?

• Higher interest rates

• Rapid operating margin expansion

• Increased dividends

• Lower inflation