What Is The Fundamental Driver of Fund Flows Into Emerging Markets?

The transcript discusses the current state of market cycles, emphasizing the late cycle phase and the impact of yield curve inversion on future expectations. It highlights how markets are pricing in a recession more quickly than expected, particularly in emerging markets (EM). The discussion covers the growth differential favoring EM due to the US tax cut's one-time impact on corporate profitability. The transcript also addresses central bank tightening and its effects on the rate environment, especially in Asia. Finally, it examines the US's exceptional growth in 2018 and the normalization process favoring EM.

What factors contribute to the current valuation multiples in emerging markets?

How does the growth differential between the United States and emerging markets impact investment decisions?

What are the implications of central bank tightening on emerging markets in 2019?

In what ways has the rate environment changed compared to historical contexts?

What was the impact of the corporate tax cut on corporate profitability in the United States?