Dollar Is Reasonably Fully Valued vs. Most EM Currencies, Wells Fargo Says

The video discusses the potential rally of emerging market currencies against the US dollar, considering the current economic environment. It analyzes the valuation of the US dollar, suggesting it is fully valued against most emerging market currencies, making a significant move unlikely. The speaker emphasizes a preference for equity investment over currency trading, highlighting that currency effects are generally an output of their investment process. They remain agnostic on most emerging market currencies, focusing on individual company health for long-term tracking.

What factors are contributing to the potential rally of emerging market currencies against the US dollar?

• Increasing inflation in the US and decreasing inflation in emerging markets

• Falling rate expectations in the US and improving growth in emerging markets

• Rising interest rates in the US and declining growth in emerging markets

• Stable rate expectations in the US and stagnant growth in emerging markets

Why does the speaker believe the US dollar is unlikely to make a significant move like in 2018?

• The US dollar is undervalued against emerging market currencies

• The US dollar is overvalued against emerging market currencies

• The US dollar is reasonably fully valued against emerging market currencies

• The US dollar is not influenced by emerging market currencies

What is the speaker's preference when it comes to trading?

• They are strictly bond investors

• They are strictly equity investors

• They prefer trading bonds over equities

• They prefer trading currencies over equities

How does the speaker view the role of FX in their investment process?

• FX is a primary focus of their investment strategy

• FX is generally an output of their investment process

• FX is the only focus of their investment strategy

• FX is not considered in their investment process

What is the speaker's current stance on most emerging market currencies?

• They are actively trading most emerging market currencies

• They are optimistic about most emerging market currencies

• They are pessimistic about most emerging market currencies

• They are agnostic on most emerging market currencies