UBS's Haefele Likes Equities, Dollar-Denominated EM Sovereigns

The video discusses the ongoing US-China trade tensions, focusing on the potential impacts on the US economy and global markets. It highlights the US President's strategy in leveraging economic strength for political gain, the risks of China's retaliation, and the effects on US consumers. The discussion also covers potential investment strategies, emphasizing the strength of the US economy and the importance of equities and bonds in portfolios.

What is one reason the US President might be pushing trade issues at this time?

• To decrease the US economy's growth

• To gain political advantage in upcoming elections

• To increase tariffs on European goods

• To improve relations with China

What is a potential risk mentioned in the trade tensions between the US and China?

• China might use military force

• US corporations might face secondary effects

• China might increase tariffs on European goods

• The US might stop all trade with China

How might the fall in the yuan affect US consumers?

• Increase in inflation

• No effect on purchasing power

• Decrease in purchasing power

• Increase in purchasing power

What is considered a 'nuclear option' in the trade war?

• Using human resources as a weapon

• Deploying military forces

• Cutting off all diplomatic relations

• Increasing tariffs on all goods

What investment strategy is suggested given the current economic conditions?

• Invest in high yield bonds only

• Avoid dollar denominated bonds

• Underweight equities

• Overweight equities