Morning Meeting: Will the EM Rally Continue?

The video discusses the performance of emerging market stocks, highlighting their longest winning streak in two years due to speculation that the Fed will maintain low rates. Luis Costa Cities provides insights into the potential continuation of this rally, emphasizing the slow pace of Fed hikes. The discussion also covers the impact on EM assets, FX strategy, and market volatility. A specific focus is given to Brazil, analyzing its economic challenges and investment opportunities amidst political changes.

What is the main reason for the recent rally in emerging market stocks?

• Speculation that the Fed will maintain low rates

• Increased interest rates by the Fed

• A strong US dollar

• Decreased global risk appetite

What is a key factor contributing to the volatility in emerging market currencies?

• Stable US interest rates

• Repricing of front-end US rates

• Strong economic growth in emerging markets

• Decreasing inflation rates

What challenge do markets face regarding US interest rate hikes?

• Understanding the impact on inflation

• Dealing with a strong US dollar

• Predicting the exact timing of hikes

• Adjusting to the possibility of multiple hikes

How has the Brazilian real performed year-to-date?

• Increased by 22%

• Decreased by 5%

• Decreased by 10%

• Remained stable

What is a significant economic challenge for Brazil in the near future?

• Achieving a V-shaped recovery

• Maintaining low interest rates

• Increasing inflation

• Reducing foreign investment