EM Insight: Is the Selloff a Buying Opportunity

EM Insight: Is the Selloff a Buying Opportunity

Assessment

Interactive Video

Business

University

Hard

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The video discusses the current market sell-off, comparing it to historical events and emphasizing that such volatility is typical for emerging markets. It highlights the potential for a rebound if no further bad news occurs. The discussion shifts to market valuations, noting that despite a recent rally, valuations remain low, presenting a buying opportunity. The video concludes with an analysis of trade wars, emphasizing that the US depends more on emerging markets for trade, and that emerging markets are increasingly trading among themselves, mitigating some risks.

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5 questions

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1.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What is the typical percentage drop in emerging market stocks during significant downturns?

30-35%

15-17%

5-10%

20-25%

2.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What does the Shiller PE ratio measure?

Price as a multiple of earnings over the past year

Price as a multiple of earnings over the past ten years, adjusted for inflation

Price as a multiple of earnings over the past five years

Price as a multiple of earnings over the past twenty years

3.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

According to the discussion, why might the current market conditions be seen as a buying opportunity?

The market is expected to decline further

The market has reached its long-term average valuation

Valuations are near the lowest in 15 years

Valuations are at their highest in 15 years

4.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What percentage of US exports go to emerging markets?

25%

60%

17%

46%

5.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

How are emerging markets hedging against trade uncertainties?

By increasing exports to the US

By trading more among themselves

By reducing overall trade

By focusing on domestic markets