JPM's Wolf Likes Developed Market Cyclicals, Financials

The video discusses the December minutes, highlighting a slight surprise in the balance sheet runoff and the debate around rate liftoff. It emphasizes the achievement of inflation and labor market mandates, suggesting a few rate hikes in a low real rate environment. The speaker is positive on developed markets, particularly industrials and financials, expecting yields to rise. Infrastructure investment and corporate CapEx recovery are also noted. The video favors developed markets over emerging ones, with a cautious stance on China, highlighting selective interest in onshore equities due to early signs of easing.

What was the slight surprise mentioned in the December minutes?

• The rise in global oil prices

• The decrease in unemployment rates

• The increase in inflation rates

• The speed of balance sheet runoff

Which sectors are expected to benefit from rising yields and infrastructure investments?

• Energy and utilities

• Technology and healthcare

• Industrials and financials

• Consumer goods and services

What is the expected trend for corporate CapEx according to the video?

• It will be unpredictable

• It will remain stagnant

• It will decline significantly

• It will see further recovery

Which markets are favored over emerging markets in the current outlook?

• Latin America and Africa

• Middle East and South Asia

• US, Europe, and Japan

• Australia and New Zealand

What is the sentiment towards offshore equities in China?

• Completely negative

• Still cautious

• Cautiously optimistic

• Highly optimistic