Invesco's David Chao: Diversity to Inflation Hedged Assets

The video discusses the recent FOMC meeting, highlighting a more hawkish tone than expected, with potential tapering of asset purchases and interest rate hikes in 2023. The market's reaction is compared to the 2013 taper tantrum, noting better preparedness this time. The impact on emerging markets is also covered, with potential headwinds for EM assets and currencies due to a stronger US dollar.

What was the unexpected announcement made by Jay Powell during the FOMC meeting?

• Two potential rate hikes in 2023

• A decrease in interest rates

• Immediate tapering of asset purchases

• A new quantitative easing program

How does the market's reaction to the recent Fed announcements compare to the 2013 taper tantrum?

• Markets are better prepared now

• Markets are equally surprised

• Markets are indifferent

• Markets are less prepared now

What is one of the short-term effects of the Fed's hawkish stance on emerging market assets?

• Short-term headwinds for EM assets

• Strengthening of EM currencies

• Increased investment in US equities

• Immediate recovery of EM markets

What is the expected impact on the US dollar following the Fed's announcements?

• Weakening of the US dollar

• Strengthening of the US dollar

• Stability of the US dollar

• Volatility in the US dollar

Despite short-term challenges, what is the outlook for emerging market assets?

• Continued decline

• Stable performance

• Continued investor interest

• Immediate growth