Goetti: Continue To Favor U.S. Defensive Sectors

The video discusses the Federal Reserve's unprecedented actions of hiking rates and tapering simultaneously, causing market nervousness. It explores the impact on bond and equity markets, highlighting concerns about inflation and economic slowdown. The discussion includes predictions on bond yields, inflation trends, and the Fed's policy impact on tech stocks. The video concludes with an outlook on defensive sectors and market predictions, emphasizing the potential for policy errors and the importance of monitoring economic indicators.

What is the main concern about the Federal Reserve's current policy actions?

• They are focused solely on demand-based inflation.

• They might lead to a policy error.

• They are not aggressive enough.

• They are ignoring fiscal stimulus.

What is the speaker's view on the future of inflation?

• Inflation will remain high indefinitely.

• Inflation will decrease as supply chain issues resolve.

• Inflation will increase due to high demand.

• Inflation will be unaffected by supply chain disruptions.

How does the speaker expect the yield curve to behave if the economy slows?

• It will remain unchanged.

• It will flatten.

• It will steepen significantly.

• It will become more volatile.

What impact do rising bond yields have on technology stocks, according to the speaker?

• They have no impact.

• They provide a boost to technology stocks.

• They create a headwind for technology stocks.

• They stabilize technology stock prices.

Which sectors are expected to perform well in a slowing economy?

• Automotive and manufacturing

• Technology and finance

• Real estate and energy

• Utilities and consumer staples

What is the speaker's contrarian view regarding the 10-year treasury bond?

• It offers poor value at current levels.

• It is expected to yield 5% soon.

• It offers great value despite bearish sentiment.

• It will be heavily impacted by job reports.

How significant is the upcoming jobs report expected to be for the Federal Reserve's decisions?

• It will be crucial in shaping policy.

• It will lead to immediate policy changes.

• It will be ignored entirely.

• It will have minimal impact unless surprising.