HSBC’s Kettner Doubts a Strong Rotation Out of U.S. Equities

The video discusses Germany's economic response, highlighting the DAX's performance and the country's fiscal measures, including the furlough scheme. It compares Germany's approach to other eurozone countries and the US, focusing on income substitution and social policy. The impact of the euro's strength on inflation and growth is also analyzed, with a look at consensus expectations for economic growth in 2021.

What has contributed to the German DAX outperforming other European markets?

• A strong euro

• High inflation rates

• Germany's fiscal response

• U.S. market rotation

Why is Germany able to extend its furlough program more effectively than other countries?

• It has a larger population

• It has more natural resources

• It has a history of using such schemes

• It has a higher GDP

What historical event did Germany successfully use its furlough scheme?

• The 1997 Asian financial crisis

• The 2020 COVID-19 pandemic

• The 2015 Greek debt crisis

• The 2008 global financial crisis

How does the stronger euro affect the eurozone's economic growth?

• It limits growth

• It boosts inflation

• It increases exports

• It decreases unemployment

What is the consensus expectation for US growth in 2021 compared to the eurozone?

• US growth is expected to be higher

• Eurozone growth is expected to be lower

• US growth expectations have been revised lower

• Eurozone growth expectations have been revised lower