Stocks May Fall Without Substantial Trade Deal: Aberdeen Standard

The video discusses the potential impact of a phase one trade deal on the market, emphasizing that the market has already priced in stabilization. It compares the performance of US and China markets, noting the US market's resilience due to domestic consumption. The discussion extends to the vulnerability of European and Asian markets to global trade uncertainties. The video concludes with an analysis of 2019 market performance and the context of trade negotiations.

What is the main concern about the phase one trade deal's impact on the market?

• It will lead to a market crash.

• It may not stabilize corporate confidence.

• It will cause inflation to rise.

• It will result in a decrease in consumer spending.

Why might investors consider taking profits in US equities compared to China?

• China's market is more stable.

• US equities are less volatile.

• The US market is seen as less defensive.

• US equities have underperformed China.

What makes the US market more resilient to global economic trends?

• Its reliance on exports.

• Its high level of foreign investments.

• Its strong manufacturing sector.

• Its reliance on domestic consumption.

Which economies are more susceptible to global trade uncertainties?

• Australia and Canada

• Europe and China

• India and Brazil

• The US and Japan

What could lead to a retracement in stock prices despite strong 2019 returns?

• Increased consumer spending

• High stock multiples without a substantial agreement

• Rising interest rates

• A substantial trade agreement