Gradient Investments' Montagne Discusses Fed and Market Outlook

The video discusses the impact of new mask mandates on consumer spending and the broader markets, highlighting the Federal Reserve's stance on tapering and temporary inflation. It explores cautious market strategies, including ETF investments, due to slowing earnings growth and tech valuation disappointments. The Delta variant's impact on the labor force and consumer behavior is examined, particularly in relation to vaccination rates. Finally, the video compares the valuation gap between US and European stocks, noting opportunities in the Eurozone as vaccine rollouts accelerate.

What is one reason for the expected softening of consumer discretionary spending?

• Rise in home entertainment options

• Decrease in fuel prices

• Labor shortages in restaurants and travel sectors

• Increase in online shopping

How is the Federal Reserve currently handling asset purchases?

• They have stopped all asset purchases

• They are reducing asset purchases gradually

• They continue to buy Treasurys and mortgage-backed securities

• They are increasing asset purchases significantly

What is a reason for adopting a cautious market strategy in the short term?

• Strong labor market recovery

• Stable inflation rates

• High tech valuations and earnings disappointments

• Rapid economic growth

Which age group is less likely to have received the vaccine, affecting their spending behavior?

• 25-45 years

• 46-60 years

• 61+ years

• 18-24 years

What is the current valuation gap between US and European stocks?

• 2-3 points

• 7-8 points

• 4-5 points

• 6 points