Emerging Markets Lack Catalyst to Generate Sustained Recovery, Perpetual Says

The video discusses the current state of emerging markets, highlighting the lack of catalysts for recovery despite attractive valuations. It examines the roles of China and the US as key economic drivers, noting China's shift from stimulus to infrastructure investment and the US's rising interest rates and dollar strength. The discussion shifts to market risks, including trade wars and funding costs, suggesting a focus on domestic investments in the US due to its economic growth. However, global risks and valuation concerns remain significant.

What are the two key drivers mentioned for the economic and earnings cycle in emerging markets?

• China and India

• China and the US

• US and Europe

• India and Europe

What is the current stance of the US Federal Reserve regarding interest rates?

• Tightening rates

• Lowering rates

• Keeping rates unchanged

• Introducing negative rates

What is one of the main reasons for the lack of a catalyst in emerging markets?

• China's infrastructure investment

• Strong property investment in China

• US tax cuts

• High unemployment in the US

Why are US investors focusing on domestic companies?

• Because of low domestic interest rates

• To avoid high international tariffs

• Because of strong domestic economic data

• Due to strong international growth

What is a potential risk for US investors focusing on domestic markets?

• High unemployment rates

• Desynchronized global growth

• Increasing international trade

• Rising domestic inflation