Why the U.S. Equity Market Is Stretched

The video discusses global investment trends, focusing on the US market's perception as a safe investment despite high valuations and political uncertainty. Concerns about trade policy and potential trade wars are highlighted. The asset allocation strategy is examined, with a focus on equities and the US market's performance. Market reactions to US policy and fiscal stimulus expectations are analyzed, along with the US Treasury market and bond valuations in a slow-growth world.

What is one of the main concerns international investors have about the US market?

• Technological advancements

• Low interest rates

• High inflation rates

• Trade policy uncertainties

Why does the global allocation fund have a higher allocation to stocks?

• Stocks are cheaper than bonds

• There are no better opportunities abroad

• Bonds are more expensive than stocks

• The US market is undervalued

Which regions are considered to have better investment opportunities than the US?

• Europe and Japan

• Middle East and North Africa

• Africa and South America

• Australia and Canada

What could cause a market reaction according to the discussion?

• Decrease in unemployment rates

• Technological breakthroughs

• Lack of political consensus

• Increase in oil prices

What is a structural factor affecting the fair value of US Treasury bonds?

• Older population

• Rising unemployment

• Technological advancements

• High inflation