Allspring Global Investments' Jacobsen on EM

The video discusses the attractiveness of emerging markets, particularly during Fed hiking cycles, where they have historically outperformed the S&P 500. It highlights the impact of the dollar's strength and market valuations, noting that emerging markets may benefit from a stable or weakening dollar. The discussion also covers Chinese assets, regulatory concerns, and the importance of active management in navigating these challenges. A thematic approach is emphasized, with portfolio managers playing a key role in security selection. The video concludes by addressing the impact of vaccination rollouts on emerging markets, suggesting that increased vaccination rates could aid economic recovery.

What historical trend is noted about emerging market assets during Fed hiking cycles?

• They outperformed the S&P 500.

• They underperformed the S&P 500.

• They were unaffected by Fed policies.

• They remained stable.

Why is the dollar's current state considered favorable for emerging markets?

• It is expected to weaken significantly.

• It is expected to trade sideways or slightly lower.

• It is expected to strengthen significantly.

• It is expected to become highly volatile.

What is a key strategy for investing in Chinese assets amidst regulatory concerns?

• Investing only in non-tech Chinese sectors.

• Working with active managers familiar with the regulatory landscape.

• Avoiding Chinese assets altogether.

• Relying solely on passive investment strategies.

How does the thematic approach influence investment in emerging markets?

• It disregards market sentiment.

• It focuses solely on short-term gains.

• It avoids any form of grassroots engagement.

• It relies on individual portfolio managers for security selection.

What is a potential benefit of increased vaccination rates in emerging markets?

• It will only benefit developed markets.

• It will have no impact on economic recovery.

• It may reduce the divide between developed and emerging markets.

• It could lead to a humanitarian crisis.