Zak Mir and Alessio Rastani, were joined by James Helliwell, Head of Markets at the Lex van Dam Trading Academy, to discuss the equity market and emerging markets.
What’s driving the equity market?
Helliwell outlined the outperformance of growth stocks relative to value, the continued underperformance of cyclical versus defensive firms, and the degree of exponential growth in developed market performance compared to that of the emerging markets.
Were people going to dump emerging markets anyway?
Helliwell continued and expressed how an increase in USD strength following a Fed rate hike would make it more expensive to continue to finance investment in emerging markets. He also commented that this slowing growth in emerging markets will impact and slow down the global growth.