Nixon: Underweight EM Equities, Looking for a Catalyst

The video discusses the current easing cycle and its implications for emerging markets, highlighting the role of central banks like the ECB and the Fed. It explores the impact of trade conflicts and foreign direct investment on these markets, with a focus on countries like South Korea and Indonesia. The discussion also covers currency volatility, market uncertainty, and investment strategies, emphasizing the need for fiscal stimulus alongside rate cuts. The video concludes with an analysis of the US economy, consumer resilience, and the potential effects of capital investment and currency fluctuations.

Why are emerging market equities selling off while their currencies are rallying?

What factors are contributing to the uncertainty in emerging markets as discussed?

What are the implications of the trade conflict on emerging market economies and companies?