European, Japanese Cyclicals Have Further to Run: UBS

The video discusses the subdued inflation and cyclical market trends, highlighting the US market's leadership and the global rotation pattern. It examines the impact of inflation on Chinese equities and suggests cautious investment strategies in China. The video also explores opportunities arising from divergences in central bank policies, focusing on regions like England, New Zealand, and Norway.

What is a common pattern observed in previous economic cycles regarding the US market?

• The US market declines as Europe opens up.

• The US market remains stagnant while Europe grows.

• The US market leads and then investors rotate to Europe.

• The US market typically lags behind Europe.

How have vaccination rates impacted the economic recovery in Europe and Japan?

• They have slowed down the recovery process.

• They have facilitated a stronger recovery compared to the US.

• They have caused a decline in market performance.

• They have had no impact on the recovery.

What factor is contributing to the potential recovery of the Chinese market in 2022?

• A strong devaluation of the currency.

• Increased regulation in the tech sector.

• A cautious approach to less regulated sectors.

• A significant drop in vaccination rates.

What is a key strategy for cautious exposure to the Chinese market?

• Avoiding all Chinese investments.

• Investing only in traditional manufacturing sectors.

• Focusing on internet and healthcare sectors.

• Investing heavily in regulated sectors.

Which regions are highlighted as having potential investment opportunities due to central bank policy divergences?

• Japan and the Swiss franc.

• England and New Zealand.

• China and Japan.

• Europe and the US.