2020 Earnings Growth Forecasts Overly Optimistic: UBP's Jolidon

The video discusses the current state of the equity market, highlighting the strong performance in 2019 due to multiple expansions despite earnings downgrades. It examines the optimistic earnings growth projections for 2019 and 2020, particularly in sectors like energy and materials, and suggests potential for multiple compression. The discussion also touches on the influence of central banks and political factors on market multiples, emphasizing the preference for decisions based on equity fundamentals.

What event in 2018 is mentioned as influencing the equity market in 2019?

• The Brexit referendum

• The fourth quarter market downturn

• The trade war between the US and China

• The US presidential election

Which sectors are noted for having potentially optimistic earnings growth expectations?

• Finance and real estate

• Consumer goods and services

• Energy and materials

• Technology and healthcare

What is suggested as a potential outcome due to overly optimistic earnings growth?

• Multiple compression

• Higher interest rates

• Multiple expansion

• Increased dividends

What is considered more influential on equity multiples than fundamentals?

• Corporate earnings

• Market speculation

• Central bank decisions

• Investor sentiment

What external factor is mentioned as impacting equity decisions?

• Political framework

• Climate change

• Technological advancements

• Global pandemics