Now Is Right Time to Invest in EM, Says Pictet's Paolini

The video discusses the risks and opportunities in emerging markets, focusing on the role of the US dollar and global economic conditions. It highlights the potential for investment in emerging market stocks and bonds, considering the current valuations and the impact of global liquidity changes. The discussion also covers the influence of US economic performance on the dollar and its subsequent effects on emerging markets, especially in the context of trade tensions and central bank policies.

What is the main reason the speaker believes it might be a good time to invest in emerging market stocks and bonds?

• Global growth is expected to decline.

• The US dollar is peaking, making emerging markets more attractive.

• Emerging markets have reached their peak valuation.

• The US dollar is expected to strengthen further.

How does the transition from global QE to QT affect emerging markets?

• It increases liquidity in emerging markets.

• It poses challenges due to reduced global liquidity.

• It strengthens the US dollar.

• It has no impact on emerging markets.

What is the current state of real interest rates in the US according to the speaker?

• They are at zero.

• They are negative.

• They are very high.

• They are increasing rapidly.

What could potentially cause another dip in the correlation between emerging market stocks and the US dollar?

• A strengthening of the US dollar.

• A decrease in US economic growth.

• An increase in US tariffs on China.

• A resolution of trade wars.

What is the speaker's outlook on the US economy in the next 6 to 12 months?

• It will experience a significant boom.

• It will be weaker than expected.

• It will remain stable.

• It will continue to grow stronger.