Bloomberg Opinion columnist Mohamed El-Erian and Rick Rieder, chief investment officer of global fixed income at BlackRock, discussed the emerging markets, effects on liquidity and the Federal Reserve on “Bloomberg Markets: The Open.”

Points discussed with El-Erian and Rieder:

  • Volatility is docile in the U.S.
  • Market slowdowns in China and Europe
  • Fed normalizing upon dollar strength
  • Financing in this marketplace is getting more difficult
  • Massive dispersion in the performance of different market segments
  • Emerging markets have a structural imbalance–dedicated vs. crossover flows–causes liquidity issues
  • For the active investor, you can pick up cheap assets
  • For the passive investor, you get hit by contagion
  • Federal Reserve is draining liquidity by issuing debt

Related: ETFs to Capitalize on Emerging Markets’ Misery

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