Nomura's McCafferty on Markets & Strategy

The video discusses the economic outlook for 2023, highlighting potential recession impacts, interest rate changes, and geopolitical tensions. It covers Kathy Wood's perspective on the Fed's actions and market sensitivity, particularly in Asia versus Western markets. The discussion also includes investment strategies considering geopolitical risks and the removal of negative factors affecting markets.

What is the technical definition of a recession as mentioned in the video?

• A single quarter of GDP decline

• Two consecutive quarters of GDP decline

• A year of negative GDP growth

• A decline in stock market values

According to Kathy Wood, what is the bond market signaling about the Fed's actions?

• The Fed is on the right track

• The Fed is making a serious mistake

• The bond market is stable

• Interest rates will decrease soon

Which region's companies are described as having some immunity to interest rate spikes?

• European companies

• US companies

• Asian companies

• African companies

What geopolitical concern is highlighted as causing nervousness across asset classes?

• Trade wars

• Climate change

• Nuclear war risk

• Cybersecurity threats

What is the current state of foreign investor holdings in Asian markets like China and Korea?

• Rapidly increasing

• Stable and unchanged

• At multi-year lows

• At all-time highs