Turnill: Significant Risk Priced in for Emerging Markets

The transcript discusses the pricing of risk in emerging markets, influenced by US policies and market dynamics. It highlights both negative impacts, such as currency depreciation and equity falls, and positive trends like upgraded earnings and GDP growth. The discussion also covers the effects of US fiscal policies and interest rates on emerging markets, with a focus on the Mexican peso. Investment strategies are suggested, emphasizing short duration and long dollar positions, while acknowledging the potential for future growth in emerging markets.

What is one of the positive developments currently happening in emerging markets?

• Increasing trade barriers

• Rising domestic interest rates

• Decreasing GDP growth

• Upgraded earnings

What is a known factor affecting the Mexican peso according to the discussion?

• A decrease in US interest rates

• Trump's intention to renegotiate NAFTA

• The construction of a new trade route

• A new trade agreement with Europe

What typically happens to emerging markets when the US dollar is strong and interest rates rise?

• Emerging markets see increased investment

• Emerging markets experience a boom

• Emerging markets remain stable

• Emerging markets sell off

What investment strategy is currently favored over emerging markets?

• Short duration, long dollar

• Investing in technology stocks

• Long duration, short dollar

• Focusing on real estate

What is the general outlook for emerging markets according to the discussion?

• They are expected to collapse soon

• They will remain stagnant indefinitely

• They are improving but need time

• They will outperform developed markets immediately