Pockets of Opportunity Despite Yuan Worries: EM Insight

The video discusses the challenges faced by emerging markets in August, highlighting the significant drop in the Emerging Market currency index. It examines the correlation between the yuan and Asian currencies, noting the increased impact of the yuan on Asian markets. The video also explores investment strategies in emerging markets, focusing on local currency bonds as a less bearish option. The discussion includes insights from Goldman Sachs on the current market environment.

What is notable about the performance of the Emerging Market currency index this August?

• It showed a slight improvement over 2011.

• It remained stable compared to 2015.

• It has dropped more than any year in the past two decades.

• It has increased significantly compared to previous years.

How has the correlation between the yuan and Asian currencies changed recently?

• It has decreased significantly.

• It has become unpredictable.

• It has increased markedly.

• It has remained the same.

Which currency is mentioned as being particularly hard hit due to falling commodity prices?

• Russian Ruble

• Brazilian Real

• South African Rand

• Indian Rupee

What trend is observed in the investment of emerging market local currency denominated debt?

• Investors are avoiding this sector.

• Investors are uncertain about this sector.

• Bearish bets are decreasing.

• Bearish bets are increasing.

According to the transcript, which investment is considered a popular place to stay in the current environment?

• Local currency bonds in emerging markets

• Global equities

• Cryptocurrencies

• Real estate