BlackRock Looks to Treasuries in 'More Challenging' 2019 Markets

The video discusses the outlook for US Treasurys in 2019, highlighting a cautious yet balanced approach due to a global late cycle slowdown. It explores the correlation between bonds and equities, expecting a return to negative correlations driven by growth. The analysis also covers financial conditions, noting a shift towards neutral and potential Fed pauses, impacting emerging markets and interest rate expectations.

What was the stance on US Treasurys for much of the year, and what change is expected for 2019?

• Cautious, with a shift to a neutral outlook

• Cautious, with a shift to a positive outlook

• Optimistic, with a shift to a cautious outlook

• Neutral, with a shift to a negative outlook

What unusual market condition was observed in the past year regarding fixed income and equities?

• Volatile returns from both

• Stable returns from both

• Negative returns from both

• Positive returns from both

What is expected to return in 2019 between equities and fixed income?

• No correlations

• Negative correlations

• Positive correlations

• Stable correlations

What significant change is occurring in financial conditions as we approach 2019?

• Conditions are becoming easier

• Conditions are approaching neutral

• Conditions are becoming unpredictable

• Conditions are becoming more restrictive

What impact might a Fed pause have on emerging markets?

• Decrease in market interest

• No significant impact

• Relief and attractive valuations

• Increase in market volatility