Goldman Remains Bullish on Emerging-Market Stocks; Favors South Korea

The video discusses the performance and outlook of emerging markets (EM) equities, focusing on LATAM, Mexico, Brazil, and Korea. Key factors include China's reopening, US economic conditions, and the US dollar's trajectory. Mexico is highlighted for its leverage to a US soft landing, while Brazil faces challenges due to central bank independence concerns. The potential for EM equities to transition from a beta to an alpha trade is explored, with China and Korea identified as key players. Korea's market is seen as undervalued, with opportunities in the semiconductor sector.

What are the three main factors driving the potential rise in EM equities?

• China's economic slowdown, US recession, and strong US dollar

• US recession, strong US dollar, and high inflation

• China's reopening, US soft landing, and a weakening US dollar

• China's reopening, US soft landing, and a strong US dollar

Why is Mexico considered a strong performer in Latin America?

• Because of its high GDP growth rate

• Because of its leverage to the US economy and firm central bank policies

• Due to its large oil reserves

• Due to its strong manufacturing sector

What is a significant concern for Brazil's market performance?

• High inflation rates

• Central bank independence and past outperformance

• Low foreign investment

• High unemployment rates

What is the main catalyst for alpha trades in EM equities?

• Strong US dollar

• High interest rates

• China's reopening and regional growth

• US economic slowdown

Why is South Korea considered a promising market despite challenges?

• Due to its strong currency

• Because of its large semiconductor industry and cyclical nature

• Because of its high GDP growth

• Due to its strong political stability