Why Robeco's Fedeli Isn't Concerned Over 3 or 4 Fed Hikes

The video discusses the impact of Federal Reserve rate hikes on emerging markets, emphasizing that growth outlook is more crucial than the number of rate hikes. It highlights the strong performance of emerging markets during past rate hike cycles and the current positive growth and earnings trends. The discussion also covers earnings growth, market performance, and structural drivers for emerging market outperformance. Additionally, it examines valuations, sector resilience, and the role of financials and consumer confidence in emerging markets.

How did emerging markets perform during the Fed's 17 consecutive rate hikes between 2004 and 2007?

• They remained stagnant.

• They experienced a strong bull market.

• They underperformed compared to developed markets.

• They went into a recession.

What has been a key driver for emerging markets to outperform developed markets since 2016?

• Higher inflation rates

• Lower interest rates

• Stronger earnings outlook

• Increased government spending

What recent trend in earnings revisions is expected to support emerging market outperformance?

• Earnings revisions have remained unchanged.

• Earnings revisions have just turned positive.

• Earnings revisions have decreased.

• Earnings revisions have turned negative.

Which sector is considered to have a positive impact from interest rates in emerging markets?

• Utilities

• Healthcare

• Financials

• Technology

In the context of emerging markets, why is there a cautious approach towards IT services?

• Due to high growth potential

• Due to valuation concerns

• Due to regulatory issues

• Due to lack of demand