JPMorgan's Sheng: Overweight DM Over EM Equities

The video discusses recent market trends, focusing on the drastic price declines and bond yield changes due to a new virus variant. It highlights the uncertainty in the market, the potential impact on reopening processes, and the importance of monitoring vaccine effectiveness. The discussion also covers the economic outlook for the next year, considering central bank policies and the potential need for reassessment if the virus strain proves significant.

What was the market reaction to the new variant on Friday?

• An increase in economic reopening

• A rally in bonds

• A surge in risk assets

• A decline in safe haven flows

What is a key factor to watch in assessing the impact of the new variant?

• Stock market trends

• Vaccine effectiveness

• Interest rate hikes

• Commodity prices

How does the current policy environment characterize the central bank's actions?

• As an aggressive interest rate cut

• As a complete halt to QE

• As a move towards less loose policies

• As a significant tightening

What is the expected economic outlook for the next year?

• Above trend growth

• Negative growth

• Stagnant growth

• Below trend growth

What might cause the Fed to reassess its tapering and tightening process?

• A decrease in inflation

• A significant impact from the new virus strain

• A rise in unemployment

• A drop in housing prices