BlackRock's Goldberg Sees Improving EM Fundamentals

The video discusses the potential of emerging markets as investment opportunities, highlighting the higher yields compared to developed markets. It explores the risks associated with currency fluctuations and the impact of Federal Reserve rate changes. The discussion includes strategies for managing these risks and the importance of timing in investment decisions.

What is the 'push effect' in the context of emerging markets?

• The decrease in investment in emerging markets

• The outflow of money from developed markets to emerging markets

• The movement of funds from emerging markets to developed markets

• The increase in yields in developed markets

How does increased investment in emerging market debt affect spreads?

• It has no effect on the spreads

• It stabilizes the spreads

• It decreases the spreads

• It increases the spreads

What percentage of total return volatility in local markets is explained by FX risk?

• 90%

• 75%

• 60%

• 50%

What is a potential consequence of the Federal Reserve raising interest rates?

• Stabilization of global markets

• Decrease in developed market yields

• Increased pressure on hard currency EM debt

• Strengthening of emerging market currencies

How does quantitative easing in Japan and Europe influence long-term interest rates?

• It increases long-term interest rates

• It decreases long-term interest rates

• It stabilizes long-term interest rates

• It has no effect on long-term interest rates