Reflation Trade Will Drive Markets For Next Year: Tribeca’s Liu

The video discusses the impact of a larger-than-expected stimulus package in the US on market expectations and opportunities, particularly in commodities and cyclical sectors. It highlights the importance of the reporting season in understanding earnings and market recovery. The discussion also covers pandemic-sensitive stocks, focusing on sectors benefiting from lockdowns and those expected to recover as restrictions ease.

What is expected to drive the equity market in the next 12 months?

• A decrease in inflationary expectations

• A larger than expected stimulus package

• A reduction in cyclical sector investments

• A decline in commodity prices

During the reporting season, what are investors primarily focusing on?

• Earnings and the impact of recent lockdowns

• Long-term market trends

• Technological advancements

• Global political changes

Which sectors are expected to offer meaningful return opportunities?

• Cyclical sectors

• Healthcare sectors

• Defensive sectors

• Technology sectors

What distinguishes the pandemic-sensitive sectors?

• Their reliance on government subsidies

• Their focus on technological innovation

• Their categorization into stay-at-home and returning-to-work sectors

• Their dependence on international trade

What is expected to happen to sectors impacted by lockdowns in the next six months?

• They will continue to decline

• They will see earnings upgrades

• They will face increased competition

• They will remain stagnant