Not Going to Get too Aggressive in EM, Says Russell Investments' Gordon

The video discusses the current state of emerging markets, highlighting the significant discount of EM equities compared to US stocks. It explores strategies for balancing risk and opportunity, emphasizing the importance of diversification and option strategies. The impact of the strong dollar and trade tensions on commodities and energy sectors is also examined, suggesting a cautious approach to allocation in these areas.

What is a significant factor affecting the valuation of emerging market equities compared to U.S. stocks?

• Inflation rates

• Trade policies

• Discount to U.S. stocks

• Interest rates

Which strategy is suggested for managing risk in emerging markets?

• Investing solely in commodities

• Using option strategies

• Avoiding currency diversification

• Focusing only on U.S. equities

What is a key consideration when adjusting allocations in energy and commodities sectors?

• Political stability

• Interest rate fluctuations

• Strong dollar and trade war impacts

• Technological advancements

How does the strong dollar influence commodities?

• It increases commodity prices

• It decreases commodity prices

• It has no effect on commodity prices

• It stabilizes commodity prices

Why might an investor avoid taking an outsized position in commodities?

• Due to high inflation rates

• Because of low interest rates

• Due to technological disruptions

• Because of potential trade impacts