How Emerging-Market Bonds Can Hedge Against U.S. Market Volatility | WSJ’s Take On the Week

In this week's episode of WSJ’s Take On the Week, co-hosts Miriam Gottfried and Telis Demos break down the math behind current oil price fluctuations and what the market is signaling about the duration of the Iran conflict. Food manufacturers and producers ConAgra Brands, Cal-Maine Foods and McCormick are reporting their earnings this upcoming week. Will these companies continue to pass on some of their high expenses to customers or will they absorb the rising costs? And a couple of the show’s listeners share their takes on the oil vs. gold portfolio hedge. After the break, Telis and Miriam are joined by Eric Fine, portfolio manager and head of active emerging market debt at global investment management firm VanEck. Fine explains the concept of fiscal dominance and why he believes the roles of developed and emerging markets have reversed. He makes the case for why bonds for countries like Brazil and Colombia may now offer more stability than U.S. Treasurys. Plus, they discuss why some emerging-markets strategies have been abandoned in favor of strict fiscal discipline. Chapters: 00:00 Introduction to International Bonds 00:34 Oil Price Framework and Market Expectations 01:51 Earnings Season Preview: Consumer Staples 03:58 Listener Feedback: Gold vs. Oil 04:49 Analysis of the 60/40 Portfolio and U.S. Treasuries 06:50 Interview with Eric Fine of VanEck on Emerging Market Debt 09:30 Commodity Exporters and Emerging Market Bond Performance 12:23 Shifting Frameworks: Developed vs. Emerging Markets 14:16 Risk-Return Profiles: U.S. Treasuries vs. Emerging-Market Bonds 18:29 Impact of Iran Conflict on Regional Bonds 21:15 Emerging-Market Bonds as a Commodity Hedge 24:55 Downside Scenarios and Closing Thoughts This is WSJ’s Take On the Week where co-hosts Telis Demos, Heard on the Street’s banking and money columnist, and Miriam Gottfried, WSJ’s investing and wealth management reporter, cut through the noise and dive into markets, the economy and finance—the big trades, key players and business news ahead. Have an idea for a future guest or episode? How can we better help you take on the week? We’d love to hear from you. Email the show at [email protected]. #WSJ #OilMarkets #BondMarket