Deutsche Bank CIO Likes Cyclical Stocks on 2021 Growth Outlook

The video discusses the impact of prolonged negotiations on market pricing, highlighting the positive effects of fiscal stimulus on equities in 2020. It contrasts growth and value stocks, noting the outperformance of technology and the resurgence of cyclical stocks. The return of bank buybacks and dividends in the US and Europe is seen as a positive market signal, aiding demand and supply dynamics.

What was one reason the US markets did not perform as poorly as others?

• The US had higher interest rates.

• The US had a larger fiscal deficit.

• There was an agreement in place through both houses of Congress.

• The US had a stronger currency.

Which type of stocks have shown a massive outperformance due to technology?

• Dividend stocks

• Growth stocks

• Cyclical stocks

• Value stocks

What is the expected performance of cyclical stocks going into 2021?

• They are expected to decline.

• They are expected to outperform growth stocks.

• They are expected to perform well.

• They are expected to remain stable.

What is the significance of the return of bank buybacks in the US?

• It indicates a decrease in market demand.

• It signals a positive outlook for the wider market.

• It shows a decline in bank profits.

• It suggests a rise in interest rates.

What role does the ECB play in the return of dividends in Europe?

• The ECB is allowing dividends under certain conditions.

• The ECB is increasing interest rates.

• The ECB is reducing fiscal stimulus.

• The ECB is restricting dividends.