JPMorgan Favors Developed Markets Over Emerging

The video discusses the potential for the Federal Reserve to normalize interest rates with larger increases, favoring developed markets over emerging ones due to confidence in economic rebounds. It highlights the cyclical sectors within developed markets and anticipates opportunities in emerging markets later in the year. The discussion also covers the treasury market, predicting a rise in yields and the need for the market to adjust to higher terminal rates.

Why is there a preference for developed markets over emerging markets currently?

• Because emerging markets have fully recovered

• Because of better handling of the omicron variant

• Due to lower interest rates in developed markets

• Due to higher growth rates in developed markets

Which sectors are being focused on within developed markets?

• Cyclical sectors like banks, energy, and industrials

• Technology and healthcare

• Real estate and consumer goods

• Telecommunications and utilities

What is expected to happen with treasury yields this year?

• They are expected to remain stable

• They are expected to fluctuate wildly

• They are expected to fall

• They are expected to rise

How many interest rate hikes are markets assuming for 2022?

• Five

• Two

• Four

• Three

What is the market's current assumption about the terminal rate for the Fed?

• It is too low

• It is too high

• It is just right

• It is irrelevant